A bank, in a 365-day year country, accepts a $2m deposit to mature in 270 days and will pay 2.33% p.a. on the deposit. How much interest will it pay?

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BlackTom AI · Accepted Answer

The problem presents a bank deposit scenario: a $2,000,000 deposit in a 365-day year country, maturing in 270 days, with an interest rate of 2.33% per annum.

First, identify the formula for simple interest over a portion of a year: I = P × r × t, where P is the principal, r is the annual interest rate, and t is the fraction of the year the money is invested (here t = 270/365).

Applying the numbers: I = 2,000,000 × 0.0233 × (270/365).

Compute the fraction of the year: 270/365 ≈ 0.739726.

Next multiply the components: 2,000,000 × 0.0233 = 46,600.

Then multiply by the year fraction: 46,600 × 0.739726 ≈ 34,471.23.

Rounding considerations: depending on the bank’s convention, the amount may be shown as $34,471.23, $34,471, or similar. The example calculation in the prompt shows $34,471.23, which aligns with standard rounding to the nearest cent.

Therefore, the interest the bank will pay on this deposit is about $34,471 (approximately $34,471.23 when rounded to the cent).

A bank, in a 365-day year country, accepts a $2m deposit to mature in 270 days and will pay 2.33% p.a. on the deposit. How much interest will it pay?

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A bank, in a 365-day year country, accepts a $2m deposit to mature in 270 days and will pay 2.33% p.a. on the deposit. How much interest will it pay?

View Explanation

Log in for full answers

Similar Questions

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