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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 $40,000. One financial institution offers 4% on threemonth term deposits and 4.5% on six-month term deposits. Nasha is considering either doing two back-to-back three-month term deposits (option 1) or just taking the six-month deposit (option 2). It is almost certain that interest rates will rise by 0.5% before her first three-month term is up. With option 1, she would place the simple interest and principal from the first three-month term deposit into the second three-month deposit.
Calculate the interest earned under each option. Round your answers to two decimal places.
Interest earned under option 1:
Interest earned under option 2: $
How much more interest does Nasha make under the best option?
Additional interest earned: $
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