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, Principal = $216,000, Rate = 5.15% (or 0.0515 when converted to decimal), and Time = 27/365 (since interest rates are annual and there are 365 days in a year). Thus, Interest = $216,000 × 0.0515 × (27/365) = $823.

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