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For Investments Over $5,000, a Bank Quotes Interest Rates of 2.75

Question 42

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For investments over $5,000, a bank quotes interest rates of 2.75% on 90-day GIC's, and 3.25% on 180-day GIC's. How much more simple interest will an investor earn by placing $8,000 in the 180-day GIC, rather than purchasing two consecutive 90-day GIC's?

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