Question
Bob buys a 7-year, $15,000 CD with an 11% nominal interest rate (compounded annually). Sue buys an 11-year, $10,000 CD with a 7% nominal interest
Bob buys a 7-year, $15,000 CD with an 11% nominal interest rate (compounded annually). Sue buys an 11-year, $10,000 CD with a 7% nominal interest rate (compounded annually). Which one of them received more in total interest paid?
A. Sue received more total interest paid but over a longer period
B. Bob received $10,426 more total interest paid
C. Bob received $5,094 more total interest paid
D. Bob received $5,426 more total interest paid
E. Bob received $10,094 more total interest paid
F. Both Bob and Sue received the same amount of total interest paid.
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