6. Febie invested in a GIC (Guaranteed Investment Certificate) that paid 3.25% simple interest. In 36 months, she earned $485. How much did she invest originally?
6. Febie invested in a GIC (Guaranteed Investment Certificate) that paid 3.25% simple interest. In 36 months, she earned $485. How much did she invest originally?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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6. Febie invested in a GIC (Guaranteed Investment Certificate) that paid 3.25%
simple interest. In 36 months, she earned $485. How much did she invest
originally?
7. Which investment will be worth more after 20 years: [A: 5] • $10 000 at 4.5% per
annum, compounded monthly, or
$8 000 at 6% per annum, compounded weekly?
8. Bintu wins the lottery big time! She is presented with two options:
Option A: $40,000 today that she must invest for 30 years (it will stuck in a bank
account until then)
Option B: A lump sum of $200 000 today
As Bintu's financial advisor you must counsel her as to what best to do. The best
savings account you can find offers 6.76% per annum, compounded weekly.
Which option will you advise Bintu to take? Explain fully. [T: 5]
MacBook
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DD
F4
F8
F9
F3
F5
F6
F7
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Transcribed Image Text:Arial
BIUA
text
12
3 4
6. Febie invested in a GIC (Guaranteed Investment Certificate) that paid 3.25%
simple interest. In 36 months, she earned $485. How much did she invest
originally?
7. Which investment will be worth more after 20 years: [A: 5] • $10 000 at 4.5% per
annum, compounded monthly, or
$8 000 at 6% per annum, compounded weekly?
8. Bintu wins the lottery big time! She is presented with two options:
Option A: $40,000 today that she must invest for 30 years (it will stuck in a bank
account until then)
Option B: A lump sum of $200 000 today
As Bintu's financial advisor you must counsel her as to what best to do. The best
savings account you can find offers 6.76% per annum, compounded weekly.
Which option will you advise Bintu to take? Explain fully. [T: 5]
MacBook
20
000
000
DII
DD
F4
F8
F9
F3
F5
F6
F7
lıli
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