How much money will you accumulate in 90 days, if you invest $10,000 today at an interest rate of 5% per year ?

Round your answer to 2 decimal places (If the answer is 6.59871 - enter as 6.60)

Question

How much money will you accumulate in 90 days, if you invest $10,000 today at an interest rate of 5% per year ?

Round your answer to 2 decimal places (If the answer is 6.59871 -> enter as 6.60)

BlackTom AI · Accepted Answer

Question restatement: You invest $10,000 today at an annual interest rate of 5% for 90 days. What is the accumulated amount, rounded to 2 decimals?

First, determine the time in years: 90 days is 90/365 ≈ 0.2466 years.

Assuming simple interest (the common interpretation for short-term questions unless otherwise specified), the future value is: FV = P × (1 + r × t).

Plug in the values: P = 10,000, r = 0.05, t ≈ 0.2466. Compute the interest factor: r × t ≈ 0.05 × 0.2466 ≈ 0.01233.

Therefore, FV ≈ 10,000 × (1 + 0.01233) ≈ 10,000 × 1.01233 ≈ 10,123.29.

Rounding: 10,123.29 already has two decimals, so it is presented as 10,123.29.

Notes on alternative interpretations: If one assumed compound interest (e.g., with monthly compounding) over 90 days, the result would differ slightly and typically would be computed as FV = P × (1 + r/m)^(m×t). With m = 12 (monthly) or m = 365 (daily), the result would not match 10,123.29 exactly. Since the provided answer aligns with simple interest using a 365-day year, that is the most consistent explanation for this scenario.

Because no answer choices are given in the prompt, there is no option-by-option analysis to perform here. The core reasoning is to convert time to years, apply simple interest, and round to two decimals as requested.

BFIN011 Week 1: Practice Quiz

How much money will you accumulate in 90 days, if you invest $10,000 today at an interest rate of 5% per year ? Round your answer to 2 decimal places (If the answer is 6.59871 -> enter as 6.60)

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