A credit unions Rate Climber GIC pays rates of 4 , 5 , and 6 compounded semiannually in successive years of a three year term a What will be the maturity value of $12,000 invested in this GIC b How much interest will be earned in the second year ...

a Maturity value PV 1 i 1 2 1 i 2 2 1 i 3 2 ...

A credit unions Rate-Climber GIC pays rates of 4%, 5%, and 6% compounded semiannually in successive years

Question:

A credit union’s Rate-Climber GIC pays rates of 4%, 5%, and 6% compounded semiannually in successive years of a three-year term.
a. What will be the value of $12,000 invested in this GIC?
b. How much interest will be earned in the second year?
Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...