Several banks across the world have announced negative interest rates. Not to be outdone, the Bank of Blonzo (BoB), recently announced a new kind of certificate of deposit (CD) with an imaginary rate. Terms are:
100 days is about 10⅓ months, and the 1i% rate is per day. This sounds like the deal of a lifetime! Indeed the BoB has been running ads with the line:
Should you invest? The financial press has gone wild since the announcement:
Question: How much money can you make on one of these CDs? See if you can figure it out before you invest. You can compare your analysis with the answer here.