question 6 of 10\nlana wants to deposit $800 in a certificate of deposit for a maximum of one year. the bank…

Explanation:

Step1: Recall simple - interest formula

The simple - interest formula is $I = Prt$, where $P$ is the principal amount, $r$ is the annual interest rate (in decimal form), and $t$ is the time in years. Here, $P=$800$.

Step2: Calculate interest for option A

For option A, $r = 0.02$ and $t = 1$. So, $I_A=Prt=800\times0.02\times1 = 16$.

Step3: Calculate interest for option B

Since Lana only wants to deposit for 1 year and this is a 3 - year CD, for the first year, $r = 0.04$ and $t = 1$. So, $I_B=800\times0.04\times1=32$.

Step4: Calculate interest for option C

For option C, $r = 0.03$ and $t = 1$. So, $I_C=800\times0.03\times1 = 24$.

Step5: Calculate interest for option D

Since Lana only wants to deposit for 1 year and this is a 3 - year CD, for the first year, $r = 0.03$ and $t = 1$. So, $I_D=800\times0.03\times1=24$.

Answer:

B. A three - year certificate of deposit with a nominal interest rate of 4 percent.