## charlotte123 3 years ago 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.

1. monokerous

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

2. charlotte123

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%.

3. monokerous

You are right.

4. charlotte123

R u sure? :D

5. monokerous

Yup!

6. charlotte123

thanks :D

7. monokerous

yw. lol :)

8. charlotte123

:D

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