which option resulted in having more money? explain the role compound interest played in making this possible.

The option that resulted in having more money is the one that incorporates compound interest. Compound interest plays a crucial role by allowing the money to grow exponentially over time because the interest earned is reinvested and begins to earn interest itself. This creates an effect of "interest on interest," which leads to faster and larger growth in the investment or savings compared to simple interest, which only calculates interest on the original principal. Specifically, compound interest works by adding the interest earned in each period to the principal, so that the base amount grows continuously. For example, if $100 earns 4% interest annually, in the second year, interest is earned not only on the initial $100 but also on the $4 interest from the first year, resulting in more interest earned in the second year. This snowball effect causes the overall amount to grow faster over time. The frequency of compounding (e.g., monthly vs. annually) also influences the total accumulated amount, with more frequent compounding resulting in more money at the end of the investment period. In summary, the power of compound interest makes it possible to have more money because it generates accelerated growth by earning interest on accumulated interest, not just on the original principal. Starting early and allowing money to compound over a longer period significantly enhances the overall return.