A certain U.S. government savings bond can be purchased for $7,500. This bond will be worth $10,000

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A certain U.S. government savings bond can be purchased for $7,500. This bond will be worth $10,000 when it matures in five years. As an alternative, a 60-month certificate of deposit (CD) can be purchased for $7,500 from a local bank, and the CD yields 6.25% per year. Which is the better investment if your personal MARR is 5% per year?
MARR
Minimum Acceptable Rate of Return (MARR), or hurdle rate is the minimum rate of return on a project a manager or company is willing to accept before starting a project, given its risk and the opportunity cost of forgoing other...
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Engineering Economy

ISBN: 978-0132554909

15th edition

Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

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