Justin Wishes to Invest $7000 in a 3-Year CD with an Interest

question 331

Multiple Choice

Justin wishes to invest $7000 in a 3-year CD with an interest rate of 6.2% each year and compounded daily. What is the annual percentage yield for Justin's CD (rounded to the nearest hundredth) ?

• A) 6.40%
• B) 6.20%
• C) 20.44%
• D) 1.06%
• E) 0.02%

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