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Answer: EUR 9,833
Most money markets, including U.S. money markets and Euro money markets, use ACT/360. - Days between January 1st and March 1st = 31 + 28 = 59 Interest earned is: $\frac{59}{360} \times 6.0\% \times 1,000,000 = 9,833$ So the interest earned is **EUR 9,833**.
Author: Manit Arora
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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
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