Prairie Grains Cooperative wants to invest $45 000 in a short-term deposit. The bank offers 1.3% interest for a one-year term and 1.1% for a six-month term.
(a) How much would Prairie Grains receive if the $45 000 is invested for one year?
(b) How much would Prairie Grains receive at the end of one year if the $45 000 is invested for six months and then the principal and interest earned is rein-vested for another six months?
(c) What would the one-year rate have to be to yield the same amount of interest as the investment described in part (b)?