Thursday
October 2, 2014

Homework Help: math(simple interest)

Posted by Sat on Thursday, July 23, 2009 at 6:07pm.

Suppose that the current rates on 60- and 120-day GICs(Guaranteed Investment Certificates) are 5.50% and 5.75%, respectively. An investor is weighing the alternatives of purchasing a 120-day GIC versus purchasing a 60-day GIC and then reinvesting its maturity value in a second 60-day GIC. What would the interest rate on 60-day GICs have to b 60 days from now for the investor to end up in the same financial position with either alternative?

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

math(application of simple interest) - Suppose that the current rates on 60- and...
finance - Rob has $1,000 to invest for 120 days and is considering two options. ...
Compound Interest - A bank offers a rate of 5.3% compounded semi-annually on its...
compounded interest - A bank offers a rate of 5.3% compounded semi-annually on ...
math & finance - A bank offers a rate of 5.3% compounded semi-annually on its ...
Math! - A credit Union pays 8.25% comppunded annually on 5-year compound-...
Pre-Calculus - How to solve this problem by using logarithm: David inherits $...
math linear equations - suppose you earn 5.50/h at a bakery. From your first ...
Algebra - An inheritance of $19,000 was divided among three investments yielding...
simple interest - find the simple interest. Assume a 360-day year and a 30-day ...

Search
Members