Asked by Arnim Mathur on Jun 02, 2024
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Mrs. Sandhu placed $11,500 in a 4-year compound-interest GIC earning 3.75% compounded monthly. What is the GIC's maturity value?
Compound-interest
Interest calculated on the initial principal and also on the accumulated interest of previous periods.
GIC
A Guaranteed Investment Certificate (GIC) is a Canadian investment that offers a guaranteed rate of return over a fixed period, often issued by banks or trust companies.
Maturity Value
The sum of money an investor receives at the conclusion of a fixed-term investment, which encompasses both the original investment and the earned interest.
- Ascertain the prospective value of funds considering diverse compounding intervals.
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Learning Objectives
- Ascertain the prospective value of funds considering diverse compounding intervals.
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