You have 7,000 CAD to invest , and BMO offers you with a published interest rate of APR 7.5 % compounded semi - annually . You also visited CIBC and you were offered a different interest rate in quarterly compounding ( a ) What would be APR quarterly compounding rate CIBC would charge so that you can have the same amount of money at the end of 10 years , whether you invest with CIBC or BMO ? b ) You visited another bank , RBC and learnt that the bank gives you an APR interest rate compounded monthly . Since the interest rate is compounding 12 times a year , instead of CIBC or BMO ? Why or why not ?