Interest and Borrowing

Hong Kong

Stage 1 - Stage 3

Neil invested $\$3500$$3500 at $4.3%$4.3% p.a. compounded daily.

a

Find the amount of interest earned in a year.

Write your answer to the nearest cent.

b

Find the effective annual interest rate as a percentage.

Round your answer to two decimal places.

Easy

Approx 4 minutes

The Bank of Hilo offers 2 investment opportunities to investors:

Option 1: $6.86%$6.86% p.a. simple interest for $10$10 years.

Option 2: $6.76%$6.76% p.a. compound interest for $6$6 years, compounding semiannually.

Christa's investment of $\$7630$$7630 earned interest at $2.3%$2.3% p.a. compounded semiannually.

Neil invested $\$2610$$2610 at $2.7%$2.7% p.a. compounded quarterly.

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