Asked by Areli Hernandez on May 13, 2024
Verified
Jacques received the proceeds from an inheritance on March 15. He wants to set aside, in a term deposit on March 16, an amount sufficient to provide a $45,000 down payment for the purchase of a home on November 1. If the current interest rate on 181-day to 270-day deposits is 3.75%, what amount should he place in the term deposit?
Term Deposit
A type of bank deposit that has a fixed term and typically offers a higher interest rate than savings accounts.
Down Payment
An initial upfront portion of the total amount due, often associated with the purchase of expensive goods like homes or cars, which is paid at the time of the sale.
- Apply concepts of simple interest and maturity value to real-life financial planning and decision-making.
Verified Answer
JB
Learning Objectives
- Apply concepts of simple interest and maturity value to real-life financial planning and decision-making.