You Invest $8000 in a Floating Rate Guaranteed Investment Certificate

question 172

Multiple Choice

You invest $8000 in a floating rate guaranteed investment certificate. For the first 24 months you earn 6% compounded semi-annually. For the next 6 months you earn 12% compounded monthly. What is the maturity value of the certificate?

• A) $9558.02
• B) $9888.00
• C) $9558.00
• D) $9585.00
• E) $8558.00

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Definitions:

Unconditioned Stimulus (US)

A stimulus that produces a response without prior learning.

Contiguity

In learning theory, refers to the proximity in time or space between two events, which can influence the association formed between them.

Contingency

A future event or circumstance that is possible but cannot be predicted with certainty, often requiring planning for multiple outcomes.

Extinction

the process through which a conditioned response is diminished or eliminated, often due to the conditioned stimulus being presented without the unconditioned stimulus.