Paul has $20,000 to invest for six months. For this amount, his bank pays 1.3% on a
Question:
Paul has $20,000 to invest for six months. For this amount, his bank pays 1.3% on a 90-day GIC and 1.5% on a 180-day GIC. If the interest rate on a 90-day GIC is the same three months from now, how much more interest will Paul earn by purchasing the 180-day GIC than by buying a 90-day GIC and then reinvesting its maturity value in a second 90-day GIC?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 90% (10 reviews)
Therefore Paul will earn 2014795 2012843 1952 more by pu...View the full answer
Answered By
Ajeet Singh
Hi there! Are you looking for a committed, reliable, and enthusiastic tutor? Well, teaching and learning are more of a second nature to me, having been raised by parents who are both teachers. I have done plenty of studying and lots of learning on many exciting and challenging topics. All these experiences have influenced my decision to take on the teaching role in various capacities. As a tutor, I am looking forward to getting to understand your needs and helping you achieve your academic goals. I'm highly flexible and contactable. I am available to work on short notice since I only prefer to work with very small and select groups of students. Areas of interest: Business, accounting, Project management, sociology, technology, computers, English, linguistics, media, philosophy, political science, statistics, data science, Excel, psychology, art, history, health education, gender studies, cultural studies, ethics, religion. I am also decent with math(s) & Programming. If you have a project you think I can take on, please feel welcome to invite me, and I'm going to check it out!
5.00+
4+ Reviews
24+ Question Solved
Related Book For
Fundamentals Of Business Mathematics In Canada
ISBN: 9781259370151
3rd Edition
Authors: F. Ernest Jerome, Jackie Shemko
Question Posted:
Students also viewed these Mathematics questions
-
If the interest rate is 7.9% compounded continuously, what is the required quarterly payment to repay a loan of $10,000 in five years?
-
Nick Thomas has been considering some of the issues identified in Case 3.2. He is considering different directions to take. First, he is a little concerned that most of the information on which...
-
If the interest rate money can earn is revised upward, will a scheduled payments new present value be higher or lower than before? Explain.
-
Record your responses on the spreadsheet template. 2014 February 1 - Brady and Manning decide to start up a partnership. Brady brings in $10 000 cash and equipment costing $60 000, with $17 000 in...
-
Liquid water at 100 kPa and 10oC is heated by mixing it with an unknown amount of steam at 100 kPa and 200oC. Liquid water enters the chamber at 1 kg/s and the chamber loses heat at a rate of 500...
-
Wahoo Inc., a calendar year taxpayer, leases equipment to a customer for $4,500 monthly rent. On November 27, 2018, Wahoo received a $36,000 rent payment for the eight-month period beginning on...
-
Flash Ltd manufactures eReaders and is considering expanding production. A distributor has asked the company to produce a special order of 6000 eReaders. The eReaders will be sold using a different...
-
All That Blooms performs environmentally friendly lawn services for homeowners. Its operating costs are as follows. Depreciation ...............................$1,400 per month Advertising...
-
Police Officer Jones, in full uniform, was walking the midnight shift in a high-crime area at approximately 2:00 AM and is approached by a civilian who told Officer Jones she had been robbed and...
-
A square plate in the x-y plane is situated in the space defined by -3 m x 3 m and -3 m y 3 m. Find the total charge on the plate if the surface charge density is given by ps = 4y2 (C/m2).
-
Calculate the missing values for the promissory notes described in problem. Issue date Face value ($) Term Interest rate (%) Maturity value ($) Jan. 22 6200 120 days 6388.04
-
Calculate the missing values for the promissory notes described in problem. Issue date Face value ($) Term Interest rate (%) Maturity value ($) Aug. 31 3 months 7.50 7644.86
-
Ganong Bros. Ltd., located in St. Stephen, New Brunswick, is Canadas oldest independent candy company. Its products are distributed worldwide. In 1885, Ganong invented the popular chicken bone, a...
-
A car sells for 7 5 0 0 originally and depreciates in value by 1 8 % each year for 1 5 years. at this time the car, still in mint condition becomes a classic and begins to increase in value by 2 5 %...
-
Carol feels that the best way to determine how much life insurance she needs is to use the capital drawdown method. If inflation is 2.1% and she wants to have enough life insurance to provide her...
-
Find the center and radius if the circle with the given equations. a ) x 2 + y 2 = 9
-
Find the quadratic polynomial whose graph goes through the points ( 1 , 4 ) , ( 0 , 4 ) , and ( 1 , 1 2 ) .
-
Solve the equation. If there is more than one solution, separate them with a comma. 2x+8-2= 14
-
The Skyline Motel opened for business on May 1, 2019. Its trial balance before adjustment on May 31 is as follows. In addition to those accounts listed on the trial balance, the chart of accounts for...
-
Walker, Inc., is an all-equity firm. The cost of the company's equity is currently 11.4 percent and the risk-free.rate is 3.3 percent. The company is currently considering a project that will cost...
-
Using your browsers people finder capability, find out how many telephone listings are in your state for people with the same last name as yours. How many listings are there in your state for people...
-
Using one or more search engines and key words of your choice, find (a) A website that reports the average life span of Saint Bernard dogs and (b) A website that advises business professionals on...
-
What is the difference between a sample and a census? Why can it be advantageous to select a sample instead of carrying out a census?
-
Calculate the following showing all the necessary steps: Note: CPP rate to be used in the calculation is 5.95%. Note: Don't forget to deduct pay period exemption\ \ Tanya earns $25.00 per hour. This...
-
Harley-Davidson, inc. (HOG), is a leading motorcycle manufacturer in the United States. The company manufactures and sells a number of different types of motorcycles, a complete line of motorcycle...
-
What is the net income for this period and total assets on this balance sheet Use the following adjusted trial balance to answer questions 22-25. Cash $ 6,530 Accounts Receivable 2,450 Prepaid...
Study smarter with the SolutionInn App