(Topic 5) A company has made an investment of $30,000, which matures in 180 days and pays $800 in interest. Which of the following is the effective annual yield?

The correct answer is D. 5.40%. See the full explanation below for the reasoning.

Question

(Topic 5)

A company has made an investment of $30,000, which matures in 180 days and pays $800 in interest. Which of the following is the effective annual yield?

Options

A1.31%
B1.33%
C5.33%
D5.40%

How the community answered

(35 responses)

A
9% (3)
B
11% (4)
C
3% (1)
D
77% (27)

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