You have $5000 invested in a 30-day savings certificate at an interest rate of 1.00%. How much money will you have when the certificate matures?
A) $5004.11
B) $5040.11
C) $5400.11
D) $4.11
E) $4500.11

Question

Quizplus · Accepted Answer

The formula to calculate the maturity value of a savings certificate is: 
Maturity Value = Principal + (Principal x Interest Rate x Time in years/365)

In this case, the principal is $5000, the interest rate is 1.00% and the time is 30 days, which is 30/365 years.

So, 
Maturity Value = $5000 + ($5000 x 1.00% x 30/365) 
              = $5000 + $4.11 
              = $5004.11

Therefore, the answer is A, $5004.11.

You Have $5000 Invested in a 30-Day Savings Certificate at an Interest