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An investor with $75,000 is weighing options between a 200-day GIC or two back-to-back 100-day GICs. The 200-day GIC has a posted simple interest rate
- An investor with $75,000 is weighing options between a 200-day GIC or two back-to-back 100-day GICs. The 200-day GIC has a posted simple interest rate of 1.4%. The 100-day GICs have a posted simple interest rate of 1.35%. The maturity value of the first 100-day GIC would be reinvested in the second 00-day GIC (assume the same interest rate upon renewal). Which alternative is best and by how much?
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International Economics
Authors: James Gerber
6th edition
978-0132950145, 132950146, 132948915, 978-0132948913
