What periodic payment will an investor receive from a 10-year, $250,000 annual payment GIC earning a nominal rate of 5.88% compounded annually?
A) $7,600
B) $5,698
C) $19,267
D) $12,250
E) $14,700

Question

Quizplus · Accepted Answer

The investor will receive $14,700 annually from a $250,000 GIC earning a nominal rate of 5.88% compounded annually. This is calculated by multiplying the principal amount by the interest rate: $250,000 * 0.0588 = $14,700.

What Periodic Payment Will an Investor Receive from a 10-Year