Question

Would you make more interest by investing two thousand five hundred dollars in a 6-month certificate of deposit (CD) at three percent interest or by investing one thousand dollars in a twelve-month CD at four percent interest? Show your work.

Answer 1

3% of 2500 is 75
4% of 1000 is 40

So more with 2500, assuming I'm understanding the question right (or does 3% for the 6 month CD mean 3% annually?)