2. The current rates on 90-and 180-day GICs are 5.5% and 6% simple interest, respectively. An...
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2. The current rates on 90-and 180-day GICs are 5.5% and 6% simple interest, respectively. An investor is trying to decide whether to purchase a 90-day GIC and then reinvest its maturity value in a second 90-day GIC. What would the interest rate on 90-day GICS have to be 90 days from now for the investor to end up in the same financial position with either alternative? A. 5.595% B. 6.500% C. 6.249% D. 6.413% E 7.000% 2. The current rates on 90-and 180-day GICs are 5.5% and 6% simple interest, respectively. An investor is trying to decide whether to purchase a 90-day GIC and then reinvest its maturity value in a second 90-day GIC. What would the interest rate on 90-day GICS have to be 90 days from now for the investor to end up in the same financial position with either alternative? A. 5.595% B. 6.500% C. 6.249% D. 6.413% E 7.000%
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Related Book For
Fundamentals Of Business Mathematics In Canada
ISBN: 9781259370151
3rd Edition
Authors: F. Ernest Jerome, Jackie Shemko
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