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What is the maturity value of a 6 ​-year term deposit of

​$9,930.65 at 2.4​% compounded How much interest did the deposit​
earn?

1 Answer

7 votes

Final answer:

The maturity value of the term deposit is $11,172.19 and the interest earned is $1,241.54.

Step-by-step explanation:

To calculate the maturity value of a term deposit, we use the formula:

Maturity Value = Principal Amount × (1 + Interest Rate)^Time

In this case, the principal amount is $9,930.65, the interest rate is 2.4%, and the time is 6 years. Plugging in these values into the formula, we get:

Maturity Value = $9,930.65 × (1 + 0.024)^6 = $11,172.19

Therefore, the maturity value of the term deposit is $11,172.19.

To calculate the interest earned, we subtract the principal amount from the maturity value:

Interest Earned = Maturity Value - Principal Amount = $11,172.19 - $9,930.65 = $1,241.54

Therefore, the deposit earned $1,241.54 in interest.

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