math(application of simple interest)
posted by Thara .
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?