This portfolio was started 3 years ago. What is the current value of the portfolio? - A 1200 GIC that earns 2.65% compounded quarterly - Monthly deposits of 250 into an account earning 1.75% compounded monthly Select one: a 10780.55 b. 10532.48 C. 11235.58 d. 11021.88

Here's how to calculate the current value of the portfolio:<br /><br />**1. GIC Value:**<br /><br />* The interest rate per quarter is 2.65% / 4 = 0.6625% = 0.006625<br />* The number of compounding periods over 3 years is 3 years * 4 quarters/year = 12 quarters<br />* The future value of the GIC is calculated using the formula: FV = PV * (1 + r)^n<br /> * FV = Future Value<br /> * PV = Present Value (initial investment)<br /> * r = interest rate per period<br /> * n = number of periods<br />* FV = $1200 * (1 + 0.006625)^12 <br />* FV = $1200 * 1.08285<br />* FV ≈ $1300<br /><br />**2. Value of Monthly Deposits:**<br /><br />* The interest rate per month is 1.75% / 12 = 0.0175/12 = 0.001458333...<br />* The number of periods is 3 years * 12 months/year = 36 months<br />* We use the future value of an ordinary annuity formula: FV = PMT * [((1 + r)^n - 1) / r]<br /> * FV = Future Value<br /> * PMT = Periodic Payment<br /> * r = interest rate per period<br /> * n = number of periods<br />* FV = $250 * [((1 + 0.001458333...)^36 - 1) / 0.001458333...]<br />* FV = $250 * [(1.05366 - 1) / 0.001458333...]<br />* FV = $250 * 36.687<br />* FV ≈ $9172<br /><br />**3. Total Portfolio Value:**<br /><br />* Total Value = GIC Value + Value of Monthly Deposits<br />* Total Value = $1300 + $9172<br />* Total Value ≈ $10472<br /><br />Since $10472 is closest to option b. $10532.48, the slight difference likely arises from rounding during calculations. Therefore, the answer is **b**.<br /><br /><br />Final Answer: The final answer is $\boxed{b}$