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4. Ron purchased a 10-year GIC for $3000. The GIC earns 5.6% interest, compounded annually. a) What will be the future value of the GIC

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4. Ron purchased a 10-year GIC for $3000. The GIC earns 5.6% interest, compounded annually. a) What will be the future value of the GIC at maturity? b) Estimate how long it will take for the GIC to be worth at least $12000. c) Predict what would happen to the future value of the GIC in each situation below. Explain your prediction, and then verify it. i) The compounding frequency is monthly. ii) The interest rate is 2.8%, compounded semi-annually

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