A five-year, compound-interest GIC purchased for $1000 earns 6% compounded annually. a. How much interest will the
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a. How much interest will the GIC earn in the fifth year?
b. If the rate of inflation during the five-year term is 2.5% per year, what will be the percent increase in the purchasing power of the invested funds over the entire five years?
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a Accumulated value of the GIC after 4 years PV 1 i 4 1000106 4 126248 Intere...View the full answer
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