Your Local Bank Offers 4-Year Certificates of Deposit (CDs)12

question 200

Multiple Choice

Your local bank offers 4-year certificates of deposit (CDs) 12 % compounded quarterly. How much additional interest will you earn over 4 years on a $10,000 CD that is compounded quarterly, compared with one that is compounded annually?

• A)$6,050
• B)$0
• C)$312
• D)$220

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