Question

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

Answer 1

@shamil98

Answer 2

@whpalmer4

Answer 3

@johnweldon1993

Answer 4

tbh i searched that question nd there where PLENTYY of links for the answer so ur answer is gonna be on google *^.^*

Answer 5

You don't specify the compounding, so I'll assume simple interest.

\[I = Prt\] where \(I\) is the interest earned or paid, \(P\) is the principal, \(r\) is the interest rate expressed as a decimal, and \(t\) is the time in years

\[I_{5k} = 5000*0.06*\frac{1}{2}=\]\[I_{3k} = 3000*0.04*1=\]