Question: 1. [7] A trust company offers two guaranteed investment certificates paying i(12) respectively. = 10% and i(2) = = 10%, (a) [5] Determine the

1. [7] A trust company offers two guaranteed investment certificates paying i(12)

1. [7] A trust company offers two guaranteed investment certificates paying i(12) respectively. = 10% and i(2) = = 10%, (a) [5] Determine the effective annual rates for the two investment certificates respectively. (b) [2] Which option (investment certificate) is better?

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