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Selected gic than from the alternative

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Reference no: EM132917827

RBC is offering you a four-year fixed rate compound interest GIC at 3.8% compounded quarterly. TD Canada Trust is offering you a variable rate compound interest GIC at 3.4% for the first two years, followed by 4.25% for the remaining two years. If you have $10,000 to invest, which GIC should you select? How much more interest will you earn from the selected GIC than from the alternative?

Reference no: EM132917827

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