I don't get this question. Could someone please explain how to do it.
Celia bought a $750, three-year GIC. In the first year, the GIC pays 3.5% annual interest. In the second year, it pays 3.8% annual interest. In the third year, it pays 5.25% annual interest. All interest is compounded monthly. Calculate the value of Celia's GIC after three years.
Celia bought a $750, three-year GIC. In the first year, the GIC pays 3.5% annual interest. In the second year, it pays 3.8% annual interest. In the third year, it pays 5.25% annual interest. All interest is compounded monthly. Calculate the value of Celia's GIC after three years.
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750*(1+.035/12)^12=776.675
776.675*(1+.038/12)^12=806.708
806.708*(1+.0525/12)^12=$850.095
776.675*(1+.038/12)^12=806.708
806.708*(1+.0525/12)^12=$850.095