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charlotte123
 3 years ago
Would you make more interest by investing $3,000 in a 6month certificate of deposit (CD) at 3% interest or by $1,000 investing in a 12month CD at 3.5% interest? Show your work.
charlotte123
 3 years ago
Would you make more interest by investing $3,000 in a 6month certificate of deposit (CD) at 3% interest or by $1,000 investing in a 12month CD at 3.5% interest? Show your work.

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monokerous
 3 years ago
Best ResponseYou've already chosen the best response.1Work out each of the options and you'll be able to find the answer.

charlotte123
 3 years ago
Best ResponseYou've already chosen the best response.2Does 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 6MONTH 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 12MONTH 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 6month certificate of deposit (CD) at 3%.
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