You Have Recently Come Across a Rather Large Amount of Money

question 17

Essay

You have recently come across a rather large amount of money. Because you have just finished the financial math lectures in your college math class, you decide that you should invest the money in a long-term CD (certificate of deposit). The financial section of your local paper has the following advertisements.
Countryside Credit Union
- 10 year CD with an APR of 5.44 % compounded monthly.
Northeast Bank and Trust
- 10 year CD with an APR of 5.43 % compounded continuously.
Which institution is offering a better deal? Explain.

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Definitions:

18th Amendment

An amendment to the U.S. Constitution prohibiting the manufacture, sale, and transportation of alcoholic beverages; later repealed by the 21st Amendment.

Import Quotas

Limitations set by a government on the number or value of goods that can be imported into a country within a specified time frame.

Current Drinkers

Individuals who consume alcohol and have done so recently, within a specific timeframe defined by a study or survey.

18th Amendment

An amendment to the United States Constitution that prohibited the manufacture, sale, and transportation of alcoholic beverages, later repealed by the 21st Amendment.