Asked by Esther Duenas on Jun 10, 2024
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Stan purchased a $15,000 compound-interest Series S122 Canada Savings Bond on January 1, 2010. The interest rate in the first year was 0.40% and in the second year was 0.65%. What interest did he receive when he redeemed the CSB on November 1, 2012?
Compound-Interest
Interest on a loan or deposit calculated based on both the initial principal and the accumulated interest from previous periods.
Canada Savings Bond
A financial product offered by the Government of Canada that provides a competitive, fixed interest rate over a specified period.
Redeemed
The act of exchanging a financial security or coupon for cash or the value promised.
- Determine the future worth of investments given different rates, durations, and periods of compounding.
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Learning Objectives
- Determine the future worth of investments given different rates, durations, and periods of compounding.
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