using the following maturity terms and annual interest rate :

Maturity	Annual Interest Rate (%)
1 Year	1.25%
2 Years	1.5%
5 Years	2%
10 Years	3%

Assuming joe and julia has their first yearly saving of $300 X 12 = $3600 per year which will be invested in GIC, advise the joe and julia on which maturity to select when investing their savings for their children's education:

2. Investing in one year GIC and keep renewing the principal and compound interest year after year until you reach 12 years.(5 marks)
4. Invest in 5 years GIC two times (i.e. after one term of 5 year, you take the value of your investment and then invested in another 5 years GICs), thereafter, you invest in 2 years GICs to finish the 12 years cycle(5 marks)
6. Invest in one 10 years GIC term and then 2 years GICs. (4 marks)

calculate the three option assuming you are ONLY investing $3600 (once) at the end of the year for 12 year. 

Answer rating: 100% (QA)

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