Short Answer
Roger has just invested $60,000 in a five-year Guaranteed Investment Certificate (GIC) earning 6% compounded semiannually. When the GIC matures, he will reinvest its entire maturity value in a new five-year GIC. What will be the maturity value of the second GIC if it yields:
a) The same rate as the current GIC?
b) 7% compounded semiannually?
c) 5% compounded semiannually?
Correct Answer:
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a) $108,36...View Answer
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