Calculate the amount of interest that would be earned on an account of $216,000 if it earned 5.15% for 27 days.
A) $11,298
B) $11,124
C) $823
D) $1,744
E) $2,110

Question

Quizplus · Accepted Answer

To calculate the interest earned, use the formula: Interest = Principal × Rate × Time. Here, the principal is $216,000, the annual rate is 5.15% (or 0.0515 when converted to a decimal), and the time is 27 days out of a 365-day year. Thus, Interest = $216,000 × 0.0515 × (27/365) = $823.

Calculate the Amount of Interest That Would Be Earned on an Account