Question 1135359
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1.  $1500 invested for 3 years at 12% <U>annual interest rate</U> compounded annually


    Future value FV = {{{1500*(1+0.12)^3}}} = $2107.39.



2.  $1500 invested for 3 years at 1% <U>annual interest rate</U> compounded monthly


    Future value FV = {{{1500*(1 + 0.01/12)^(3*12)}}} = $1545.66.



3.  You compare.
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If the textbook said b), it means that the person, who is responsible for this part in the textbook, 
does not understand terminology correctly.


He, probably, interprets part b) as


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    Future value FV = {{{1500*(1 + 0.01)^(3*12)}}} = $2146.15.
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It is, really, greater than a), but it is called


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    $1500 invested for 3 years at 12% <U>annual interest rate</U> compounded monthly.
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