Asked by Jessica Woolf on Jul 14, 2024
Verified
How much must be placed in a 5-month term deposit earning 4.3%, simple interest, in order to earn $500 interest?
Simple Interest
Interest determined strictly on the base amount, or on the unpaid segment of that base amount.
Term Deposit
A deposit held at a financial institution for a fixed term that offers a fixed interest rate, where withdrawing money before the term ends usually incurs a penalty.
- Grasp the technique of simple interest calculation and its practical use in diverse fiscal settings.
- Assess the end value of investments and loans with the use of simple interest rates.
- Determine the interest generated by term deposits and savings accounts.
Verified Answer
VC
Learning Objectives
- Grasp the technique of simple interest calculation and its practical use in diverse fiscal settings.
- Assess the end value of investments and loans with the use of simple interest rates.
- Determine the interest generated by term deposits and savings accounts.