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(1 point) Johnny invests in a fund by depositing $8900 on March 1st1st. The account earns...

(1 point) Johnny invests in a fund by depositing $8900 on March 1st1st. The account earns interest at 11% per annum. Let the interest be calculated daily and paid at the end of each quarter, where the next quarter-end is March 31st31st. What is the total interest earned by October 31st31st?

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Answer #1

We Have given Annual percentage = 11%

Amount deposited = $8900

The Interest earned rill october 31st will be

= Amount Deposited * Annual percentage * (Number of days for amount deposited) / 365

Number of days from 1st march to October 31st = 245 [Assuming non leap year]

= 8900 * 11% * (245 /365)

Interest earned = $657.13 ( Approximately)

Note: The Period of payout and interest calculation daily will have no effect on total interest calculation till there is no compunding.

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