Identify whether the following statements about the simple and compound interest methods are true or false. Statement True False All other factors being equal, both the simple interest and the compound interest methods will not generate the amount of earned interest by the end of the first year. The process of earning simple interest does not allow a depositor or investor to earn interest on any previously earned interest. After the end of the second year and all other factors remaining equal, a future value based on compound interest will exceed a future value based on simple interest.