Which cd does yield the higher interest

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Reference no: EM132139567

Question: Suppose you are considering investing $1,000 in one of the following bank CDs (certificate of deposit).

a. the first CD will pay an interest rate of 12% year for three years.

b. the second CD will pay 18% the first year, 10% the second year, and 8% the third year.

Which CD does yield the higher interest?

Reference no: EM132139567

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