Question

Would you make more interest by investing $3,000 in a 6-month certificate of deposit (CD) at 3% interest or by $1,000 investing in a 12-month CD at 3.5% interest? Show your work.

Answer 1

Work out each of the options and you'll be able to find the answer.

Answer 2

Does this look correct:You would make more interest by investing

Showing my work:

*3% is equivalent to 0.03.

$3,000 * 0.03 * 2 = $180.

*We must multiply by two since you are investing $3,000 in a 6-MONTH certificate of deposit (half of a year).

3.5% is equivalent to 0.035.

1,000 * 0.035 = $35

*We do not have to multiply by two here since you are investing $1,000 in a 12-MONTH CD. In short, 12 months is equivalent to a year so we do not have to multiply by two here.

Therefore, I would make more interest by investing $3,000 in a 6-month certificate of deposit (CD) at 3%.

Answer 3

You are right.

Answer 4

R u sure? :D

Answer 5

Yup!

Answer 6

thanks :D

Answer 7

yw. lol :)

Answer 8

:D