Roger has just invested $60,000 in a five-year Guaranteed Investment Certificate (GIC) earning 3% compounded semi-annually. When the GIC matures, he will reinvest its entire maturity value in a new five-year GIC. What will be the maturity value of the second GIC if it yields:
a) The same rate as the current GIC?
b) 4% compounded semi-annually?
c) 2% compounded semi-annually?
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q42: How, if at all, will the future
Q48: What amount did the owner of a
Q122: On February 1 of 3 successive years,
Q128: Teresa has three financial obligations to the
Q131: Mr. Dickson purchased a 7-year, $30,000 compound-interest
Q133: A $6,000 loan at 6% compounded quarterly
Q138: Michelle has just received an inheritance from
Q152: The BMO Bank of Montreal advertised rates
Q155: On the same date that the CIBC
Q158: Mrs. Sandhu placed $11,500 in a 4-year
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents