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%, which option pays the most interest and by how much?

Question

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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%, which option pays the most interest and by how much?

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