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

question 10

Essay

Juan has $1,000 that he would like to invest in a CD.His bank offers two alternatives,i.e.,a one-year CD paying 6 percent or a two-year CD paying 9 percent.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 percent.What alternative would give Juan the most interest and what would the total interest be?
(a)Two one-year CDs returning $120 interest
(b)Two one-year CDs returning $160 interest
(c)One two-year CD returning $180 interest
(d)One two-year CD returning $1,900 interest

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Definitions:

Individualistic Cultures

Cultures that emphasize personal goals, autonomy, and individual achievement over group cohesion and interdependence.

Collectivistic Cultures

Societies or groups that prioritize the collective over the individual, emphasizing community, cooperation, and interdependence.

Self-enhancement

The tendency to seek positive feedback and perceive oneself in a favorable light.

Unprotected Sex

Sexual activity without the use of barrier contraceptives, increasing the risk of sexually transmitted infections (STIs) and unintended pregnancies.