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Juan Has $1,000 That He Would Like to Invest in a CD

question 87

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Juan has $1,000 that he would like to invest in a CD. His bank offers two alternatives, a one-year CD paying 6% or a two-year CD paying 9% per annum. Juan has been reading that interest rates are rising, and, based on his research, he estimates that by year-end the rate on one-year CDs will increase to 10%. What alternative would give Juan the most interest and what would the total interest be?

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Definitions:

Directly Into A Vein

Referring to the administration of medication or fluids through a needle or catheter inserted into a vein, often for rapid effect.

Subcutaneous

Subcutaneous refers to the layer of tissue directly under the skin, used particularly when referring to the administration of medication that is injected into this layer.

Beneath The Skin

Referring to something that is located or occurring under the surface of the skin.

Immunization

The process of making a person immune to a disease, typically through vaccination.

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