Question
A credit union’s Rate-Climber GIC pays rates of 3.3%, 3.8%, and 4.3% compounded semiannually in successive years of a three-year term. What will be the maturity value of $25,000 invested in this GIC? (Do not round intermediate calculations and round your final answer to 2 decimal places.)
Answers
mathhelper
At end of year 1 : 25000(1.033)
at end of year 2: 25000(1.033)(1.038)
etc
at end of year 2: 25000(1.033)(1.038)
etc