You chose the correct answer.
Here is the calculation:

SIMPLE
A = P + (P x  r x t)
A = 5,000 + (5,000 x 0.06 x 10)
A = 5,000 + 3,000 = $8,000

COMPOUNDED
A = P (1 + r / k)^{k * n}
A = 5,000 (1 + 0.06/12)^{12 * 10}
A = $9,096.99

DIFFERENCE $9,096.99 - $8,000 = $1,096.99

Try another quiz:

John starts investing $1,000 annually from the age of 22 to 30 for 8 years only. After that he doesn't put in additional money. He gets 10% compound return in the investment until he retires at 65.

Mary starts investing $1,000 per year from age 30 to age 65 for 35 years. She also gets 10% compound return on the investment.

Who will have more money at the age of 65?

John
Mary