103k views
0 votes
Norma is considering buying a certificate of deposit with the $500 she has in a regular savings account. Explain to her what factors she could consider when choosing a certificate of deposit.

User Marvel
by
6.3k points

1 Answer

0 votes

Answer:

The factors she could consider when choosing a certificate of deposit is explained below in detail.

Step-by-step explanation:

A higher principal should/may obtain a greater interest rate.

A longer-term normally receives a greater interest rate, except in the matter of a modified yield curve.

Smaller businesses manage to offer greater interest rates than higher ones.

Individual CD accounts commonly obtain greater interest rates than business CD accounts.

User Rick Grundy
by
6.9k points