Asked by Sagar Rajput on May 31, 2024
Verified
Evelyn put $15,000 into a 90-day term deposit at Laurentian Bank paying a simple interest rate of 3.2%. When the term deposit matured, she invested the entire amount of the principal and interest from the first term deposit into a new 90-day term deposit earning the same rate of interest. What total amount of interest did she earn on both term deposits?
Term Deposit
A deposit at a financial institution that has a fixed term and typically offers a higher interest rate than a regular savings account.
Simple Interest
A method of calculating interest where the charge is based on the original principal amount alone, without compounding.
- Ascertain the final worth of investments and borrowings, including fixed-term deposits and past-due bills.
- Acquire the ability to apply the concept of simple interest across multiple financial contexts.
Verified Answer
IH
Learning Objectives
- Ascertain the final worth of investments and borrowings, including fixed-term deposits and past-due bills.
- Acquire the ability to apply the concept of simple interest across multiple financial contexts.