Victor plans to invest $100,000 in a GIC for three years. A bank offers an increasing rate of interest on its three-year GICs that pay semi-annual compounded rates of 2.25%, 2.75%, and 3.25%, respectively, in each of the successive years. On the other hand, a trust company offers GICs that pay 2.80% compounded semi-annually for the three-year period. With which option would he earn more and by how much?

AppendixLO1