Suppose I Have $1, 000 to Put into a One-Year

question 12

Multiple Choice

Suppose I have $1, 000 to put into a one-year CD.Community Bank offers 5 percent interest, Floatbank offers 5.25 percent, and Squidbank offers 5.40 percent.If I place my money in Squidbank, my economic profit on the investment is

• A)5.40 percent
• B)5 percent
• C)0.40 percent
• D)0.15 percent
• E)-0.40 percent

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