Investor is considering two different account options

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An investor is considering two different account options. The first is a certificate of deposit which has an introductory interest rate of 3% for the first year and 2% for the second year. The second option is a savings account with a 2.25% annual interest rate payable monthly. Determine which account will have a higher effective yield after 3 years.

Reference no: EM131977623

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