1. **State the problem:** We need to find the purchase price (present value) of a GIC with a maturity value of 32531, an interest rate of 4.47% compounded quarterly, over 4 years and 7 months. 2. **Formula used:** The compound interest formula for maturity value is $$A = P \left(1 + \frac{r}{n}\right)^{nt}$$ where: - $A$ is the maturity value - $P$ is the purchase price (present value) - $r$ is the annual interest rate (decimal) - $n$ is the number of compounding periods per year - $t$ is the time in years 3. **Identify values:** - $A = 32531$ - $r = 0.0447$ - $n = 4$ (quarterly compounding) - $t = 4 + \frac{7}{12} = 4.5833$ years 4. **Rearrange formula to solve for $P$:** $$P = \frac{A}{\left(1 + \frac{r}{n}\right)^{nt}}$$ 5. **Calculate the denominator:** $$1 + \frac{0.0447}{4} = 1 + 0.011175 = 1.011175$$ 6. **Calculate the exponent:** $$nt = 4 \times 4.5833 = 18.3333$$ 7. **Calculate the compound factor:** $$1.011175^{18.3333} \approx 1.2219$$ 8. **Calculate purchase price:** $$P = \frac{32531}{1.2219} \approx 26607.68$$ **Final answer:** The purchase price of the GIC is approximately **26607.68**.