Question

Banking You are going to open a certificate of deposit (CD) that earns simple

interest. One bank offers a CD in which you must deposit $500 for 3 years with
2% interest. Another bank offers a CD in which you must deposit $250 for
4 years
with 3% interest. Which CD will earn more interest?

Answer 1

They will earn equal profit

Explanation:

Intrest given by first bank=(500*3*2)/100=30

Intrest given by second bank=(250*3*4)/100=30