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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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