NEWS photo Torry Peters RON ANDREWS recreation centre on Mount Seymour Parkway recently recelved a new roof. _ONE OF the major trust com- panies has been creating a lot of interest through its recently introduced “weekly pay” Guaranteed Investment Cer- -tificates (GICs). . By Rick Bates _ Contributing Writer And investors in GIC’s, under- standably, are wondering whether the weekly interest feature is a good thing. : ‘ The answer here has to be of the ' “yes-and-no” variety — with per- _ haps a leaning toward “yes,” under certain conditions. First of all, what we're really looking at in the case of weekly interest GICs is the effect of com- pounding on interest, and in turn its effect on your ultimate earnings. Now as any chartered accoun- tant will quickly point out, the more often interest is calculated and paid Athat.is, the more often it is com- pounded) the better your eventual return. So, as far:as that goes, then weekly interest .GIC’s are a good thing. ‘After all, it means that 52 times a year interest is either paid to you or credited to your account. Thanks to the effects of com- pounding, that first week's interest earns interest, in turn, for the next .51 weeks. So how much difference does that really make? Given. today’s rates (running about 4% for a five-year GIC), the maturity value of $1,000 with inter- est paid weekly would be $1,221.31; about $5 more than the $1,216.65 you'd receive from a GIC with interest paid annually. Not all that impressive. But if you're investing $100,000 in the same GIC, you would earn about $500 more, or about one-half percent over the life of the GIC. As with any investment, it’s very important to look closely at the numbers before deciding. For example, a five-year GIC at 4.5%, with interest paid annually (maturity value $1,246.18), is better than one at 4.25% with interest paid weekly (value at one year $1,236.30). So, if it comes down to a4 choice between a lower interest rate com- pounded weekly and a higher rate compounded annually, then you're probubly wise to go with the higher rate. And it doesn’t have to be all that much higher — a quarter point would do it. But where the interest rates are even, then there’s just no contest — * Rates subject to change without notice _. GIC investors: look at weekly interest weekly is better every time. With most GICs, your money, and the interest it earns, is locked up tight for whatever term you choose. Not so with the new weekly pay GIC, With this one you can with- draw money eveiy week if you have a mind to. But this is not a good idea. Unless you absolutely need the money, leave it alone to compound. Providing you get the right rate, a weekly pay GIC will help it add up even faster, Rick Bates is assistant professor of accounting & finance with the University of Guelph. The Management and staff of Regency Nissan BRITISH COLUMBE* 5 treasury biH program his beon cancelled, Finance Minister Gtizabeth Cull announced recently. ; “The province's treasury bill program has enjoyed an excellent following.” said Cull. “Bar it has hecome evident that we can be even more cost-effective by replac- ing it with other floating rate financing options.” The province also raises Mouting funds with B.C. Savings Bonds, 4 Canadian dollar promissory note program, a U.S. dotlar commercial paper program and interest rate swap agreements, “The province's obligations to investors with B.C. treasury bills will not be impacted by the cancel- lation of the pregram,” said Cui. “T-bill holders should consult their investment advisors if they have questions.” . The treasury bill program was introduced in 1982 and provided $780 million of short-term finane- ing on an on-going basis. Each ‘Tuesday, the province tendered $30 million in three-month treasury bills and $15 million in six-month treasury bills to an Open group of banks and investment dealers. The bills were then sold to investors. “The decision to end the pro- gram was made after an internal evaluation and extensive consulta- tion with investment dealers,” said Cull. “By having greater (lexibility to issue floating cate securities that best mateh the changing market conditions, the province will save money in debt servicing costs, . “The province will consider. . reintroducing the. program if | changes in market conditions: war- rant if.” Firm ices Four Rinks MCKAY LENARDUZZI. Market- ing of North Vancouver has recently been awarded the contract to market the Four Rinks ice arena complex in Burnaby, including plaas for the renovation and _ expansion of the centre, Four Rinks is owned by Canlan Investment Corporation and the parent company has made applica- tion to expand their operation to a comprehensive sports Cacility encompassing eight rinks. This will make the complex the largest structure of its type in North America. : McKay Cenarduzzi will be responsible for marketing the development in its current form and through future expansion to a multi-use sports facility. Gerry Dean, formerly of the Vancouver Canadians, has joined McKay Lenarduzzi to help oversee. the process. He will -serve as Director of Marketing for Four Rinks and will be headquartered at 6501 Sprott Street in Burnaby. Gerry has a long history in’; sports marketing, including stints _ as trainer for various teams in the- National Hockey League. . Canlan Investment Corporation . and its subsidiaries are the largest’ private sector operator of recre- — ational ice facilities in Canada. : They have ownership interest in and/or operate 15 ice:rinks in. Burnaby, Toronto, Saskatoon, Regina and Bellingham. Future plans include further.development - : in both Canada andthe U.S.- . McKay Lenarduzzi is a market-" ing firm which has operated for. three years by partners .Wayne McKay and Dan Lenarduzzis ~. (NORTH. SHORE) invite you to come in and experience for yourself the * Highest Quality AAA Rated issuer Minimum Investment $20,000 Limited Supply exciting, new, completely redesigned 1995 Maxima. The new Maxima will elevate your expectations of a true touring sedan with its more spacious interior, distinctive styling, dynamic _—_ suspension & revolutionary 190 HP engine. 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