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CIBC is offering you an annual rate of return of 8 % on your $ 1 0 , 0 0 0 investment payable at the

CIBC is offering you an annual rate of return of

8 %

on your $

10, 000

investment payable at the end of

5

years. They have interest compounded annually. RBC offered the same deal but interest compounded

quarterly. TD offered the same deal with interest compounding monthly. How much do you expect to

get from each bank at the end of

5

years? Which one will you choose?

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