A 180-day GIC pays annualized interest at six and a half percent.How much interest will you earn on $5000 if you hold it to maturity?

Question

Quizplus · Accepted Answer

First, we need to calculate the interest for the full term of 180 days:
6.5% annual interest rate / 365 days = 0.0178% daily interest rate
0.0178 x 180 days = 3.204% interest earned
Now, we can calculate the actual interest earned on $5000:
$5000 x 3.204% = $160.27
Therefore, the best choice is B, as it is the only option that represents the correct amount of interest earned.

A 180-Day GIC Pays Annualized Interest at Six and a Half