On the same date that the CIBC advertised rates of 1%, 1.1%, 1.15%, 1.25%, and 3% in

Question:

On the same date that the CIBC advertised rates of 1%, 1.1%, 1.15%, 1.25%, and 3% in successive years of its five-year compound-interest Escalating Rate GIC, it offered 1.25% compounded annually on its five-year fixed-rate GIC. How much more will a $10,000 investment be worth at maturity if the Escalating Rate GIC is chosen instead of the fixed-rate GIC?

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