Final answer:
To find the time it takes for two CDs to earn equal interest, we compare the interest rates and evaluate the maturity dates.
Step-by-step explanation:
To calculate the time it takes for the two CDs to earn equal interest, we need to compare the interest rates and evaluate the maturity dates.
a) Identify the time it takes for equal interest: If the rate of interest is the same for both CDs and they earn equal interest, then the time it takes for them to earn equal interest is the same as the difference in their maturity dates. In this case, it is 5 months - 4 months = 1 month.
b) Compare the interest rates: Since the rate of interest is the same for both CDs, the interest rates are equal.
c) Evaluate the maturity dates: The maturity date is the date when the CD reaches its full term and the principal plus interest is paid out to the investor. In this case, the maturity date for the 5-month CD is 5 months from the start date, and the maturity date for the 4-month CD is 4 months from the start date.
Therefore, the answer is: d) All of the above.