8. On the same date that the CIBC advertised rates of 2%, 2.5%, 3%, 3.25%, and 7% in successive years of its five-year compound-interest Escalating Rate Guaranteed Investment Certificate (GIC), it offered 2.75% compounded annually on its five-year fixed-rate GIC. How much more will a $10,000 investment be worth at the end of the five years if the Escalating Rate GIC is chosen instead of the fixed-rate GIC? (444.21)

9. How much money was needed 15 years ago to have the purchasing power of $1000 today if the (compound annual) rate of inflation has been:

a.2%?

b.4%?

10. An eight-year note for $3800 with interest at 11% compounded semiannually was sold after three years and three months to yield the buyer 14% compounded quarterly. What price did the buyer pay? (4655.39)(remember the two step!)