The maturity value of the GIC you bought for $10,000 at 7.2% compounded quarterly is $21,000. Calculate the term, in years and months, of the GIC.

Select one:

a. 10.4167

b. 10 years and 7 months

c. 10.3321

d. 12 years and 4 months

e. 10 years and 5 months

What single payment today would replace a payment stream of $50,000 that will be paid today, again at the end of year 1, and again at the end of year 2, if money earns 4% compounded semi-annually?

Select one:

a. $98,058.44

b. $97,484.92

c. $94,384.98

d. $93,485.53

e. $85,865.39

After 10 years of semi-annual compounding, an $8000 investment in a GIC earns $3000 in interest. What is the nominal interest rate?

Select one:

a. 3.21%

b. 3.51%

c. 4.21%

d. 3.61%

e. 3.71%

Determine the discounted value of an investment with maturity value of $12,000, if it is discounted 5 years before maturity at 8% compounded quarterly.

Select one:

a. $8590.48

b. $8075.66

c. $8152.69

d. $8384.39

e. $8129.37