Question 1135874
<pre>Simple interest formula          Compound interest formula
  A = P∙(1+r∙t)                           A = P∙(1+r/n)<sup>nt</sup>
  A = P∙(1+0.06∙t)                        A = P∙(1+0.059/1)<sup>(1)t</sup>
                                          A = P∙(1.059)<sup>t</sup> 

After 1 year

  A = P∙(1+0.06∙1)                        A = P∙(1.059)<sup>1</sup>
  A = P∙(1.06)                            A = P∙(1.059)

Multiplying the principle by 1.06 is slightly better than multiplying by 1.059. So
the simple interest is a slightly better deal ONLY because he is planning to
invest his money for one year only.  If he were planning to invest his money for
two years or more, then the compound interest would be slightly better. 

Edwin</pre>