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?
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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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?
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