Explanation:
Most money markets, including U.S. money markets and Euro money markets, use ACT/360.
Interest earned is:
So the interest earned is EUR 9,833.
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Q-168.3. An investor has funds invested in a German money market instrument that pays in Euros with an interest rate of 6.0% per annum. What is the interest earned on EUR 1,000,000 from January 1st, 2011 to March 1st, 2011?
A
EUR 9,833
B
EUR 11,800
C
EUR 11,836
D
EUR 12,000