For Investments of $5,000 to $24,999, a Bank Quotes Interest

Short Answer

For investments of $5,000 to $24,999, a bank quotes interest rates of 2.65% on 90-day GICs and 2.85% on 180-day GICs. How much more interest will an investor earn by placing $15,000 in a 180-day GIC than by purchasing two consecutive 90-day GICs? (Assume that interest rates do not change over the next 90 days. Remember that interest earned from the first 90-day GIC can be invested in the second 90-day GIC.)