What will be the maturity value of $15,000 placed in a 120-day term deposit paying a simple interest rate of 2.75%, if the term deposit proceeds are reinvested into another 120-day term deposit paying 3.5%?

Term Deposit

A type of financial account where money is deposited for a fixed period and a predetermined interest rate, offering higher interest rates than savings accounts but with restricted access to funds.

Simple Interest

A technique for computing interest in which the interest expense is calculated solely on the initial amount of the principal.

Maturity Value

The total amount that will be paid to the investor at the end of a fixed-term investment, including the principal and any accrued interest.