you are going to open a certificate of deposit $500 for 3 years with 2% interest. another bank offers a CD in which you must deposit $250 for 4 years with 3% interest. Which CD will earn more interest.

1 answer

500 * 0.02 * 3 = 30

250 * 0.03 * 4 = 30

Why not deposit 500 in the second bank?