Question: a) Determine the total interest earned for each option at the end of each year. GIC [2 Marks] 1 2 Leigh plans to invest

a) Determine the total interest earned for each option at the end of each year. GIC [2 Marks] 1 2 Leigh plans

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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