Question: [ Related to Solved Problem 3 . 1 A ] Suppose that you are considering investing $ 1 comma 3 0 0 1 , 3
Related to Solved Problem A Suppose that you are considering investing $ comma in one of the following bank CDs
bullet CD which will pay an interest rate of per year for three years
bullet CD which will pay an interest rate of the first year, the second year, and the third year
The future value of CD is $enter your response here and the future value of CD is $enter your response here.Round your responses to the nearest cent.
Given the future values you calculated, which CD should be chosen?
A
CD should be chosen.
B
CD should be chosen.
Now suppose for CD the interest rates stay the same but the order in which they are paid changes such that CD pays an interest rate of the first year, the second year, and the third year. What is the future value of new CD
The future value of new CD is $enter your response here. Round your responses to the nearest cent.
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