In a world characterized by rising interest rates, many financial institutions use a stepped yield GIC (Guaranteed Investment Certificate) to make investors think they are earning a higher rate of return than they actually are. In an example from a few years ago, the bank advertised the following yields:

Year 1: 1.5%

Year 2: 1.7%

Year 3: 2.00%

Year 4: 3.5%

Year 5: 8.7%

What is the annually compounded rate of return from this investment (Hint: use a geometric mean to find the answer)? Multiple Choice 3.85% 4.11% 2.75% 3.45%