A deposit of $10,000 at 9.5% for 90 days = _____.
I = 10,000 * 0.095 * 0.25
$237.50
To calculate the total amount of interest earned on a deposit, you can use the formula:
Interest = (Principal * Rate * Time) / 365
Where:
Principal = $10,000
Rate = 9.5% (or 0.095 as a decimal)
Time = 90 days
Now let's substitute the values into the formula:
Interest = (10,000 * 0.095 * 90) / 365
Next, calculate the final amount:
Total Amount = Principal + Interest
Let's calculate the interest first:
Interest = (10,000 * 0.095 * 90) / 365
Interest = 237.67 (rounded to the nearest cent)
Now, add the interest to the principal:
Total Amount = 10,000 + 237.67
Total Amount = $10,237.67
Therefore, a deposit of $10,000 at an interest rate of 9.5% for 90 days will yield a total amount of $10,237.67.