Answer:
The correct option is D,the money market and savings bond both earn 7% interest so they are equal.
Explanation:
In deciding the option that is preferable ,we need to need the rate of interest offered by the savings bond with which we can compare to the return offered by the money market account.
Using financial calculator, rate=rate(nper,,-pv,fv,1)
Please take close look at the usage of double commas and 1 in the formula.
nper= number of years=10 years
pv=$25
fv=$50
rate=rate(10,,-25,50,1)
rate=7%
The money market and savings bond both earn 7% interest so they are equal in value
To understand how this is done in excel ,find attached.