Asked by Meghan Benton on Jun 14, 2024
Verified
A five-month term deposit of $10,000 at the Scotiabank earned $75 in interest. What annual rate of simple interest did the deposit earn?
Term Deposit
A fixed-term investment held at a financial institution that pays interest at a specified rate and matures on a specific date.
Scotiabank
A Canadian multinational banking and financial services company, one of the largest in Canada in terms of deposits and market capitalization.
Annual Rate
The interest rate for a period of one year, often used for comparing the annual interest of financial products.
- Achieve proficiency in the calculation and application of simple interest within various financial frameworks.
- Assess the earnings from interest on term deposits and savings accounts.
- Build expertise in determining the effective annual rate from simple interest contexts provided.
Verified Answer
KP
Learning Objectives
- Achieve proficiency in the calculation and application of simple interest within various financial frameworks.
- Assess the earnings from interest on term deposits and savings accounts.
- Build expertise in determining the effective annual rate from simple interest contexts provided.