Asked by Janet Green on Jun 07, 2024
Verified
A chartered bank offers a rate of 5.50% on investments of $25,000 to $59,999 and a simple interest rate of 5.75% on investments of $60,000 to $99,999 in 90 to 365-day GICs. How much more will an investor earn from a single $80,000, 180-day GIC than from two $40,000, 180-day GICs?
GICs
A financial vehicle in Canada, Guaranteed Investment Certificates offer investors a set return rate over a defined period.
Simple Interest
Interest calculated on the principal or original amount of a loan or investment, without compounding.
- Calculate straightforward interest percentages and examine their impact on the returns of investments.
- Analyze and compare the returns of different monetary investments over several periods.
Verified Answer
BM
Learning Objectives
- Calculate straightforward interest percentages and examine their impact on the returns of investments.
- Analyze and compare the returns of different monetary investments over several periods.