Mary deposits $15,000 in a bank account earning simple interest rate r = 5.25% on October 25,2013 and leaves it on deposit until February 4,2014.Using exact interest,how much interest is earned during the entire investment period?
A)$217.91
B)$223.13
C)$220.07
D)$222.23

Question

Quizplus · Accepted Answer

The interest earned is $15,000 * 5.25% * (101 days / 365 days) = $220.07.

Mary Deposits $15,000 in a Bank Account Earning Simple Interest