You walk into a bank with $1,000 that you wish to invest in a CD (certificate of deposit).The bank gives you two options:
Option #1: 3.97% compounded monthly
Option #2: 4.00% compounded annually
Which option is better for you? Compare the two options by comparing their effective interest rates.

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The Answer of You walk into a bank with $1,000 that you wish to invest in a CD (certificate of deposit).The bank gives you two options:
Option #1: 3.97% compounded monthly
Option #2: 4.00% compounded annually
Which option is better for you? Compare the two options by comparing their effective interest rates.

You Walk into a Bank with $1,000 That You Wish