Certificate A pays $1,200 in six months and $1,100 in one year. Certificate B pays $1,150 in three months and $1,150 in one year. If the current rate of return required is 6.75% simple interest, which option pays the most interest and by how much?

Question

Quizplus · Accepted Answer

The Answer of Certificate A pays $1,200 in six months and $1,100 in one year. Certificate B pays $1,150 in three months and $1,150 in one year. If the current rate of return required is 6.75% simple interest, which option pays the most interest and by how much?

Certificate a Pays $1,200 in Six Months and $1,100 in One