Final answer:
Eagle Bank's 1-year CD offers a fixed interest rate resulting in predictably earning $22 in interest on a $1,000 deposit over one year, as opposed to variable rates or longer-term CDs that involve compound interest calculations.
Step-by-step explanation:
The Eagle Bank's 1-year CD is guaranteed to return $22 in interest on a $1,000 deposit because it offers a fixed annual rate of interest that, when applied to the initial deposit amount for the duration of one year, results in a predictable amount of interest earned. Unlike a savings account which typically has a variable interest rate that could change, a CD locks in a rate for a set term, ensuring the $22 return in this instance. In contrast, a 5-year CD with a 2% interest rate, compounded annually, would involve the calculation of compound interest over the five-year period to determine its value at the end.