a) Determine the total interest earned for each option at the end of each year. GIC...
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a) Determine the total interest earned for each option at the end of each year. GIC [2 Marks] 1 2 Leigh plans to invest $2200 for 4 years. She is considering two options: A compound interest Guaranteed Investment Certificate (GIC) earning 5.6% per year for 4 years A simple interest government bond earning 6.1% per year for 4 years 3 Year 4 1 Year 2 3 4 Principal Interest earned (5.6%) Government Bond [2 Marks] Interest earned (6.1%) Principal b) Which is the better option? Explain. [1 Mark] Total interest Total interest c) If Leigh can only invest for 3 years, which is the better option? Explain. [1 Mark] a) Determine the total interest earned for each option at the end of each year. GIC [2 Marks] 1 2 Leigh plans to invest $2200 for 4 years. She is considering two options: A compound interest Guaranteed Investment Certificate (GIC) earning 5.6% per year for 4 years A simple interest government bond earning 6.1% per year for 4 years 3 Year 4 1 Year 2 3 4 Principal Interest earned (5.6%) Government Bond [2 Marks] Interest earned (6.1%) Principal b) Which is the better option? Explain. [1 Mark] Total interest Total interest c) If Leigh can only invest for 3 years, which is the better option? Explain. [1 Mark]
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SOLUTION To calculate the interest earned for each option at the end of each year well use the given ... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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