Karl invested his savings in a short-term fund that was offering a simple interest rate of 5% p.a. The maturity value of the investment at the end of 310 days was $22,602.44. a. Calculate the principal amount invested. Round to the nearest cent b. Calculate the interest earned during the period. Round to the nearest cent
Karl invested his savings in a short-term fund that was offering a simple interest rate of 5% p.a. The maturity value of the investment at the end of 310 days was $22,602.44. a. Calculate the principal amount invested. Round to the nearest cent b. Calculate the interest earned during the period. Round to the nearest cent
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Karl invested his savings in a short-term fund that was offering a simple interest rate of
5% p.a. The maturity value of the investment at the end of 310 days was $22,602.44.
a. Calculate the principal amount invested.
Round to the nearest cent
b. Calculate the interest earned during the period.
Round to the nearest cent
K
↑
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