A bank offers interest rates of 1.50% p.a. for 60-day GICs and 1.75% p.a. for 120-day GICs. Roberto was considering the following two investment options at this bank:

Option A: Invest an amount in a 120-day GIC. Option B: Invest an amount in a 60-day GIC then invest the maturity amount in a second 60-day GIC. What interest rate should be offered on the second 60- day GIC for Roberto to earn the same amount from either option?AppendixLO1