You are advising a customer who has $5,000 to invest. You evaluate two banks to find the best deal. Sunshine Bank suggests you invest the money in a Certificate of Deposit (CD) that earns 5% interest

You are advising a customer who has $5,000 to invest. You evaluate two banks to find the best deal. Sunshine Bank suggests you invest the money in a Certificate of Deposit (CD) that earns 5% interest every six months. Moonlight Bank suggests that you purchase a stock that is currently paying 9% in annual dividends. This stock paid 6% the previous year. You plan on investing the money for 5 years.