## “Sound” Investment: Figuring Out How Much You Invested Before — By Solely Looking at the Current Interest Amount

Need a dose of *no-BS* financial education? Here’s a good news for you. Not too long ago, we were chatting with our *wildly imaginative* friend and tutee Victor, who came up with the following investment question:

OK. Let’s say that a while ago, I set up a lump sum of investment with a total of \$10,000 CAD towards a Canada Savings Bond (CSB) and a Guaranteed Investment Certificate (GIC) from one of the Big Five, but because of my memory problem, I forgot what were the exact amounts I allocated to my CSB and GIC. However, since I am not totally out of my mind yet, I still remember that my bond earns at an annual interest rate of 2%, and that my GIC is a bit higher at 6%. I also know that both of my investments are compounded daily, and payable at the end of each month.

But the question is this: Let’s say that at the end of 10 years of dedicated investment, I end up earning an interest totalling up to \$5000 CAD. Can I somehow use this information to help me recover how much I invested in CSB and GIC in the first place?

*excellent*one! Talk about creativity here! So, what do you think? And if you just can’t wait for the answer, just read on!

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