For a Three-Year GIC Investment, What Nominal Rate Compounded Monthly

question 321

Short Answer

For a three-year GIC investment, what nominal rate compounded monthly would put you in the same financial position as 5.5% compounded semiannually?

---

Definitions:

Laos

A country in Southeast Asia known for its mountainous terrain, French colonial architecture, Buddhist monasteries, and the Mekong River.

Salvador Allende

Salvador Allende was a Chilean physician, socialist politician, and the first Marxist to become president of a country through open elections.

Nixon Administration

The presidency of Richard Nixon, the 37th President of the United States, which lasted from 1969 to 1974.

Economic Aid

Financial assistance provided by one country or international organization to another to support its economic development and welfare.