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 . )