Asked by Clarissa Illianna on Jul 08, 2024
Verified
Which interest rate would you prefer to earn on a three-year GIC: 6% compounded monthly, 6.1% compounded quarterly, 6.2% compounded semiannually, or 6.3% compounded annually?
Compounded Quarterly
Interest calculation where the interest earned over a quarter is added to the principal for the calculation of future interest, effectively compounding every three months.
- Assess and determine the most advantageous interest rates for loans and investments, taking into account the terms of their compounding.
Verified Answer
AT
Learning Objectives
- Assess and determine the most advantageous interest rates for loans and investments, taking into account the terms of their compounding.