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Kellie has $7,000 to invest. A local bank offers a 30-month CD with an APR of 3.7% compounded monthly. What is the APY? (Round your answer to three decimal places.) % Mariah has $10,000 to invest. A local bank offers a 24-month CD with an APR of 3.7% compounded monthly. What is the APY? (Round your answer to three decimal places.) % Compare the APY results. Which of the following statements is true?

Kellie's CD has a higher APY because her money is invested for a longer period of time than Mariah's.Mariah's CD has a higher APY because the amount of money she is investing is greater than Kellie's. Their CDs have the same APY because they have the same number of compoundings per year and the same APR. The amount invested and the time period of the investment don't matter because they aren't part of the APY formula.

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PRACTICE ANOTHERAt age 25, you start work for a company and are offered two retirement options.

Retirement option 1: When you retire, you will receive a lump sum of $30,000 for each year of service. Retirement option 2: When you start to work, the company deposits $15,000 into an account with an APR of 12% compounded monthly. When you retire, you get the balance of the account.

At age 58, option 1 will provide a retirement benefit of what amount? $ At age 58, option 2 will provide a retirement benefit of what amount? Round your answer to the nearest whole dollar. $ Which option is better if you retire at age 58?

retirement option 1retirement option 2

At age 68, option 1 will provide a retirement benefit of what amount? $ At age 68, option 2 will provide a retirement benefit of what amount? Round your answer to the nearest whole dollar. $ Which option is better if you retire at age 68?

retirement option 1retirement option 2

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