A credit union's RateClimber GIC pays rates of 2%, 3%, and 4% compounded semiannually in successive years
Question:
A credit union's RateClimber GIC pays rates of 2%, 3%, and 4% compounded semiannually in successive years of a threegear 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?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 87% (16 reviews)
a b Maturity ...View the full answer
Answered By
Subash Murugaih
I am leading expert in this web site couple of years and My clients are much happy with my works and services.
4.60+
309+ Reviews
539+ 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

A credit unions RateClimber GIC pays rates of 4%, 5%, and 6% compounded semiannually in successive years of a threeyear term. a. What will be the maturity value of $12,000 invested in this GIC? b....

A fiveyear compoundinterest GIC pays rates of 1%, 2%, 3%, 4%, and 5% in successive years. What will be the maturity value of $10,000 invested in this GIC?

A fiveyear, compoundinterest GIC purchased for $1000 earns 6% compounded annually. a. How much interest will the GIC earn in the fifth year? b. If the rate of inflation during the fiveyear term is...

Laval produces lighting fixtures. Budgeted Information for Its two production departments follows. The departments use machine hours (MH) and direct labor hours (DLH). Overhead cost Direct labor...

Three alternative processes shown in the accompanying figure are suggested to change the state of one kg of air from 0.8 MPa, 25C (state1) to 0.3 MPa, 60C (state5). Process 125 consists of a...

Harvey sells his personal residence on March 18, 2010, for $78,000. He paid $86,000 for it on April 22, 2008.

How can the reasonableness of the estimated required holding period return be evaluated?

a. Based upon the data in Exercise 187, determine the following: 1. Direct materials cost per equivalent unit. 2. Conversion cost per equivalent unit. 3. Cost of the beginning work in process...

SpecialOrder Pricing Barrys BarBQue is a popular lunchtime spot. Barry is conscientious about the quality of his meals, and he has a regular crowd of 800 patrons for his $9.90 lunch. His variable...

A small hotel has 50 rooms that rent for $105 per night and cost $45 to clean and prepare each night they are used. All rentals are by reservation and there is a 10 percent chance that an individual...

A $1000facevalue strip bond has 22 years remaining until maturity. What is its price if the market rate of return on such bonds is 3.95% compounded semiannually?

Jamil was scheduled to pay $3100 eight months ago, and an additional $5200 in 3 years from now. He did not make the $3100 payment. How much should his creditor be willing to accept in 18 months from...

Graph the equations given in Example 4. Equations From Example 4. x + x + y 3y + 2 = 0 y y x + 1 +

The amounts of caffeine in a sample of fiveounce servings of brewed coffee are shown in the histogram. Number of 5ounce servings S 25 20 15 10 25 12 10 1 2 70.5 92.5 114.5 136.5 158.5 Caffeine (in...

Tom, David, Dale, and Murdock are four business students who want to rent a four bedroom apartment together for the fall semester. They have identified the three factors important to them in...

Listed below, out of order, are the steps in an accounting cycle. 1. Prepare the unadjusted trial balance. 2. Post journal entries to general ledger accounts. 3. Analyze transactions from source...

Consider Quick Start QFD Matrix 2 above. Which two technical specifications are strongly correlated with each other? Quick Start QFD Matrix 2 Strong positive correlation Some positive correlation ==...

A cylindrical solenoid of length \(\ell\) and radius \(R\) has \(n\) windings per unit length and carries a current \(I\). (a) Use the inductance expression \(L=\left(\mu_{0} N^{2} A ight) / \ell\)...

Write a program that produces the sum of all the whitespaceseparated integers in a text file. For example, bears: 17 elephants 9 end should output 26.

With your classmates, form small teams of skunkworks. Your task is to identify an innovation that you think would benefit your school, college, or university, and to outline an action plan for...

Is there enough evidence to infer that heads of households who finish high school (EDCL: 1 = no high school diploma, 2 = high school diploma) have greater net worth than those who did not complete...

Do college graduates have smaller unrealized capital gains (KGTOTAL) in theirhouseholds than do households with only some college (EDCL: 3 = some college, 4 = college degree)? Conduct a test to...

Estimate how much greater income (INCOME) is earned in households whose heads completed college (EDCL: 3 = some college, 4 = college degree) when compared to heads who only have some college.

An underlying asset price is at 100, its annual volatility is 25% and the risk free interest rate is 5%. A European call option has a strike of 85 and a maturity of 40 days. Its BlackScholes price is...

Prescott Football Manufacturing had the following operating results for 2 0 1 9 : sales = $ 3 0 , 8 2 4 ; cost of goods sold = $ 2 1 , 9 7 4 ; depreciation expense = $ 3 , 6 0 3 ; interest expense =...

On January 1, 2018, Brooks Corporation exchanged $1,259,000 fairvalue consideration for all of the outstanding voting stock of Chandler, Inc. At the acquisition date, Chandler had a book value equal...
Study smarter with the SolutionInn App