A 3-month (91-day) deposit of EUR25 million is made at 3.25%. At maturity, it is rolled over three times at 3.55% for 90 days, 4.15% for 91 days and 4.19% for 89 days. At the end of 12 months, how much is repaid (principal plus interest)?
A) EUR 25,962,011.01
B) EUR 25,959,714.91
C) EUR 25,948,878.47
D) EUR 25,948,648.82

Question

Quizplus · Accepted Answer

The interest for each period is calculated using the formula: Interest = Principal * Rate * (Days/360). The total amount repaid is the sum of the principal and all interest earned over the four periods.

A 3-Month (91-Day) Deposit of EUR25 Million Is Made at 3.25