On June 1st, 2014 Brandon invested $4 500 in a GIC at an annual interest rate that was compounded quarterly. On June 1st, 2018 Nihal invested $5 500 into the same GIC at the same annual interest rate, also compounded quarterly. On June 1st of 2020, they each cashed in their GIC and received the exact same amount. What annual interest rate was the GIC earning? Express answer as a percentage, rounded to 2 decimals.

On June 1st, 2014 Brandon invested $4 500 in a GIC at an annual interest rate that was compounded quarterly. On June 1st, 2018 Nihal invested $5 500 into the same GIC at the same annual interest rate, also compounded quarterly. On June 1st of 2020, they each cashed in their GIC and received the exact same amount. What annual interest rate was the GIC earning? Express answer as a percentage, rounded to 2 decimals.

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 15E

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