peter takes a loan of $ 100000 with 12 % annual interest : the interest is paid once , at the end of the year . martha takes a loan of $ 100000 with 12 % annual interest , compounding monthly at the end of each month . at the end of one full year , compared to peter ' s loan interest , approximately how much more does martha have to repay ?	Choose the correct choice from the following options
A) $ 68.25	B) zero	C) $ 6825.00	D) $ 6.82	E) $ 682.50

Rationale: peters interest = $ 100000 * 0.12 = $ 12000 or $ 1000 each month . martha ’ s interest , 12 % / 12 = 1 % each month : for the 1 st month = $ 100000 * 0.01 = $ 1000 ; for the 2 nd month = $ 1000 + 1 % of 1000 = $ 1010 , so we would have interest earned on interest ( very small amount ) ; for the 3 rd month = $ 1010 + 1 % of 1010 = ~ $ 1020 ; for the 4 th month = $ 1020 + 1 % of 1020 = ~ $ 1030 ; . . . for the 12 th month = $ 1100 + 1 % of 1100 = ~ $ 1110 . the difference between peters interest and martha ’ s interest = ~ ( 10 + 20 + . . . + 110 ) = $ 660 . answer : e .
Answer: E