OfficialKakashisWife
contestada

Lana wants to deposit $800 in a certificate of deposit for a maximum of one year. The bank offers her four options. Which offer would earn Lana the most interest?

A. A one-year certificate of deposit with a nominal interest rate of 2 percent.
B. A three-year certificate of deposit with a nominal interest rate of 3 percent
C. A one-year certificate of deposit with a nominal interest rate of 3 percent
D. A three-year certificate of deposit with a nominal interest rate of 4 percent

-----please no links thank you! ------​

Respuesta :

adioabiola

Here, we are required to determine which offer would earn Lana the most interest?

The offer which would earn Lana the most interest in one year is Choice C.

According to the question, Lana's principal is $800:

By taking the choices into consideration one after the other,

For choice A,

  • A one-year certificate of deposit with a nominal interest rate of 2 percent, she only gets $16 as her interest.

For choice B,

  • A three-year certificate of deposit with nominal interest rate of 3 percent, she only gets $24 after 3 years and consequently, only $8 after one year.

For choice C,

  • A one-year certificate of deposit with a nominal interest rate of 3 percent, she gets $24 as her interest after one year.

For choice D,

  • A three-year certificate of deposit with a nominal interest rate of 4 percent, she gets $32 after 3 years, consequently, she gets only $10.67 after a year.

Observation from the scenarios above give evidence that choice C would earn Lana the most interest after a year.

Read more:

https://brainly.com/question/24132446

Otras preguntas