Robert placed $7,000 in a 10-month term deposit paying 6.25%. How much will the term deposit be worth when it matures?
A) $3,645.83
B) $7,991.81
C) $7,364.58
D) $6,653.46
E) $7,769.89

Question

Quizplus · Accepted Answer

The term deposit will be worth $7,364.58 when it matures. This is calculated by applying the interest rate to the principal amount for the given time period. The interest earned is $7,000 * 6.25% * (10/12) = $364.58. Adding this to the principal gives $7,000 + $364.58 = $7,364.58.

Robert Placed $7,000 in a 10-Month Term Deposit Paying 6