A bank promises an annual return of 4.85 percent on a 60 day,$300,000 CD.What will be the total amount due to the customer at the end of the two-month period?

Question

Quizplus · Accepted Answer

The annual return is 4.85%, which means the rate for 60 days is 4.85%/365*60=0.79%. 
The total amount due to the customer at the end of the two-month period is $300,000*(1+0.79%)=$302,425. Therefore, the correct answer is A.

A Bank Promises an Annual Return of 4