1.6 [Related to Solved Problem 3.1A on page 57] Suppose that you are considering investing $1,000 in bank CDs. a. First, you consider one of the following CDs: CD 1, which will pay an interest rate of 5% per year for three years CD 2, which will pay an interest rate of 8% the first year, 5% the second year, and 3% the third year Which CD should you choose? b. Would your answer to part (a) change if the sec- ond CD pays an interest rate of 1% the first two years and 10% in the third year? Briefly explain. c. Now, suppose that in addition to the two CDs described in part (a), there is a third CD that pays an interest rate of 3% the first two years and an interest rate of 7% the third year. How does the future value of this investment compare to the other two? Which is the best investment? 1.6 [Related to Solved Problem 3.1A on page 57] Suppose that you are considering investing $1,000 in bank CDs. a. First, you consider one of the following CDs: CD 1, which will pay an interest rate of 5% per year for three years CD 2, which will pay an interest rate of 8% the first year, 5% the second year, and 3% the third year Which CD should you choose? b. Would your answer to part (a) change if the sec- ond CD pays an interest rate of 1% the first two years and 10% in the third year? Briefly explain. c. Now, suppose that in addition to the two CDs described in part (a), there is a third CD that pays an interest rate of 3% the first two years and an interest rate of 7% the third year. How does the future value of this investment compare to the other two? Which is the best investment