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Leo Wishes to Invest $8000

question 32

Essay

Leo wishes to invest $8000.00 that he saved from his summer job. His bank offers 3.75% for a one-year term investment or 3.5% for a six-month term. Help Leo to investigate his options.
a) How much will Leo receive after one year if he invests at the one-year rate?
b) How much will Leo receive after one-year if he invests for six-months at a time at 3.5% each time?
c) What would the one-year rate have to be to yield the same amount of interest as the investment described in part b)?


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Provincial Legislation

Laws and regulations enacted by the legislative authority of a province or territory in a country.

Fundamental Justice

A principle underlying the legal system that ensures fair legal processes and respect for human rights.

Parliamentary Supremacy

The principle that Parliament has the supreme authority to make or repeal any law.

Confederation

The process that united the British colonies in North America as the Dominion of Canada in 1867.

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