A five-year, compound-interest GIC purchased for $1000 earns 2.25% compounded annually. a. How much interest will the
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A five-year, compound-interest GIC purchased for $1000 earns 2.25% compounded annually.
a. How much interest will the GIC earn in the fifth year?
b. If the rate of inflation during the five-year term is 1.1% per gear, what will be the percent increase in the purchasing power of the invested funds over the entire five gears?
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a The formula for calculating compound interest is A P1 rnnt where A is the final amount P ...View the full answer
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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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