The difference between the simple interest after 2 years and the compo

This is tricky. I initially picked E thinking that because I do not know the frequency it is compounded, I have no way of deriving the initial sum.

1) Good to know the percentage of the simple, but there are still too many unknown variables. Insufficient.

2) I initially thought that this suggested that the rate of the compound interest is 8%, and it didn't tell us anything about the way in which is was compounded. After reviewing I'm now under the impression that that takes into account the compounding scheduling, which makes it a higher effective rate of interest. However, since we still don't know what that simple interest is, this is insufficient as well.

Combine them together, you have the simple interest rate, you have the effective compound interest rate, and you have a duration and difference of interest. You can get the initial investment.

C.

I don't know how I feel about this one. I like that it's making me think critically right now and learn what sort of information I truly need, but I hope that this is more wordplay than I would ever see on the test. If I see 37 of these, I'm getting 2/37 on it for sure.