You Are Investing $\$ 1000$ In a Certificate of Deposit for 2 Years and You

Multiple Choice

You are investing $\$ 1000$ in a certificate of deposit for 2 years and you want the interest for that time to exceed $\$ 50$ . The interest is compounded annually. What interest rate should you have? Hint: Solve the inequality $1000 ( 1 + r ) ^ { 2 } > 1,050$ . Round your answer to one decimal place.

A) $3.8 \%$
B) $3.5 \%$
C) $4.8 \%$
D) $2.5 \%$
E) $1.1 \%$