Detailed Instructions: In this task, you need to answer the given multiple-choice question on the gain. Gain is the value by which to multiply the input. Classify your answers into 'a', 'b', 'c', 'd', and 'e'.
Problem:Problem: a chartered bank offers a 5 - year escalator guaranteed investment certificate . in successive years it pays annual interest rates of 4 % , 4.5 % , 5 % , 5.5 % , and 6 % , respectively , compounded at the end of each year . the bank also offers regular 5 - year gics paying a fixed rate of 5 % compounded annually . calculate and compare the maturity values of $ 1000 invested in each type of gic . ( note that 5 % is the average of the 5 successive one - year rates paid on the escalator gic . )
Options: a ) 1276.28 , b ) 1276.22 , c ) 1276.29 , d ) 1276.21 , e ) 1276.23
Solution:
a