Sun Life Financial Trust offers a 360-day short-term GIC at 0.65%. It also offers a 120-day short-term GIC at 0.58%. You are considering either the 360-day GIC or three consecutive 120-day GICs. For the 120-day GICs, the entire maturity value would be "rolled over" into the next GIC. Assume that the posted rate increases by 0.1% upon each renewal. If you have $115,000 to invest, which option should you pursue and how much more interest will it earn?

Answer rating: 100% (QA)

The best option for an investor with 115000 to invest is to purchase three consecutive 120day GICs T... View the full answer