A bank pays a simple interest rate of 2.1% on 30 to 179-day GICs of at least $100,000. What is the effective annualized rate of return:
a) On a 40-day GIC?
b) On a 160-day GIC?

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The Answer of A bank pays a simple interest rate of 2.1% on 30 to 179-day GICs of at least $100,000. What is the effective annualized rate of return:
a) On a 40-day GIC?
b) On a 160-day GIC?

A Bank Pays a Simple Interest Rate of 2