Sun Life Financial Trust offers a 360 -day short -term GIC at 0.65 %. It also offers a 120 -day short - term GIC at 0.58 % You are considering either the 360 -day GIC or three consecutive 120 -day For the 120 -day GICS , the entire maturity value would be "rolled over " into the next GIC. Assume that the posted rate increases by 0.1 % upon each renewal If you have $115,000 to invest , which option should you pursue and how much more interest will it earn?

Sun Life Financial Trust offers a 360 -day short -term GIC at 0.65 %. It also offers a 120 -day short - term GIC at 0.58 % You are considering either the 360 -day GIC or three consecutive 120 -day For the 120 -day GICS , the entire maturity value would be "rolled over " into the next GIC. Assume that the posted rate increases by 0.1 % upon each renewal If you have $115,000 to invest , which option should you pursue and how much more interest will it earn?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter2: The Domestic And International Financial Marketplace

Section: Chapter Questions

Problem 4P

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