If $ 5,000 is invested in an account that earns 16% interest compounded semi-annually, then the interest earned after one year would be how much greater than if the $ 5,000 had been invested at 8% simple yearly interest? Choose the correct answer:  A) $ 4  B) $ 8  C) $ 12  D) $ 16  E) $ 432

Rationale: "solution amount ( ci ) = p + ( 1 + r / n ) ^ nt = 5000 + ( 1 + 0.16 / 2 ) ^ 2 = 5416 amount ( si ) = p + ptr / 100 = 5000 + ( 5000 * 1 * 16 / 100 ) = 5400 difference = 5416 - 5400 = 16 $ d"
Answer: D