A 3-month (91-day) deposit of AUD 25,000,000.00 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) AUD 25,962,011.00
B) AUD 25,959,714.91
C) AUD 25,948,878.47
D) AUD 25,948,648.82

Question

Quizplus · Accepted Answer

The correct answer is A because the total interest earned over the 12-month period is AUD 962,011.00, which is added to the principal amount of AUD 25,000,000.00 to give a total repayment of AUD 25,962,011.00.

A 3-Month (91-Day) Deposit of AUD 25,000,000