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Nasha is searching for the best way to invest her $ 4 0 , 0 0 0 . One financial institution offers 4 % on
Nasha is searching for the best way to invest her $ One financial institution offers on threemonth term deposits and on sixmonth term deposits. Nasha is considering either doing two backtoback threemonth term deposits option or just taking the sixmonth deposit option It is almost certain that interest rates will rise by before her first threemonth term is up With option she would place the simple interest and principal from the first threemonth term deposit into the second threemonth deposit.
Calculate the interest earned under each option. Round your answers to two decimal places.
Interest earned under option :
Interest earned under option : $
How much more interest does Nasha make under the best option?
Additional interest earned: $
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