Question

$1000 was invested into a GIC that returns 5% simple interest every year. If the GIC

matures in 4 years, what is the total value of the investment at maturity?
$1050
$1200
$200
$50

Answer 1

Explanation:

P=$1000

interest rate„r=5%

time„t=4year

I=?

I=Prt

I=1000×5%/100×4

I=1000×0.05×4

I=200

I=$200