Suppose a bank promises an annual return of 6.5 percent on a three month (90-day $150,000 CD),what will be the total amount due to the customer at the end of the three month period?
A)$152,437.50
B)$2,437.50
C)$150,000
D)$152,404.11
E)None of the options is correct

Question

Quizplus · Accepted Answer

The interest for 3 months is calculated as: $150,000 * (6.5/100) * (90/365) = $2,437.50. Adding this to the principal gives $152,437.50.

Suppose a Bank Promises an Annual Return of 6