If a 6 month term deposit at a bank pays a simple interest of 3%, how much will have to be deposited to earn $18,000? A. $270 B. $120,000 C. $540  D. $600,000 E. $1,200,000

Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter4: Time Value Of Money
Section: Chapter Questions
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If a 6 month term deposit at a bank pays a simple interest of 3%, how much will have to be deposited to earn $18,000?

A. $270

B. $120,000

C. $540 

D. $600,000

E. $1,200,000

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