You have $1000 to invest and your local banker presents two options.Option A is to put the
money into a certificate of deposit (CD) for 5 years at an interest rate of 6.5% compounded
continuously.Option B is to put the money in a savings account at 7.5% simple interest for 5
years.At the end of 5 years, which investment yields a higher return, and by how much?

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The Answer of You have $1000 to invest and your local banker presents two options.Option A is to put the
money into a certificate of deposit (CD) for 5 years at an interest rate of 6.5% compounded
continuously.Option B is to put the money in a savings account at 7.5% simple interest for 5
years.At the end of 5 years, which investment yields a higher return, and by how much?

You Have $1000 to Invest and Your Local Banker Presents