When Jay wins a contest, he is able to choose one prize from four options. He chooses a 4-year certificate of deposit that will accumulate interest and cannot be cashed in until maturity in four years. Given the options below, which prize would provide Jay with the largest value four years from now?
A) $1,000 with an interest rate of 4%.
B) $850 with an interest rate of 8%.
C) $1,100 with an interest rate of 3%.
D) $940 with an interest rate of 6%.

Question

Quizplus · Accepted Answer

The Answer of When Jay wins a contest, he is able to choose one prize from four options. He chooses a 4-year certificate of deposit that will accumulate interest and cannot be cashed in until maturity in four years. Given the options below, which prize would provide Jay with the largest value four years from now?
A) $1,000 with an interest rate of 4%.
B) $850 with an interest rate of 8%.
C) $1,100 with an interest rate of 3%.
D) $940 with an interest rate of 6%.

When Jay Wins a Contest, He Is Able to Choose