$[$Related to Solved Problem $3\mathrm{.}1$A$]$ Suppose that you are considering investing $$1,000$ in one of the following bank CDs$.$

CD $1,$ which will pay an interest rate of $8\%$ per year for three years

CD $2,$ which will pay an interest rate of $12\%$ the first year, $9\%$ the second year, and $5\%$ the third year

The future value of CD $1$ is $$,$ and the future value of $CD2$ is $$.($Round your responses to the nearest cent.$)$

Given the future values you calculated, which CD should be chosen?

A$.$ CD $1$ should be chosen.

B$.$ CD $2$ should be chosen. year. What is the future value of new, CD $2?$

The future value of new CD $2$ is $$,($Round your responses to the nearest cent.$)$

We also have a third CD in which you might invest $$ one that pays an interest rate of $2\%$ the first two years and an interest rate of $8\%$ the third year.

How does the future value of this investment compare to the other two?

The future value of $CD3$ is than the future value of $CD1$ and the future value of $CD2$

Which is the best investment?

The best investment is $CD$