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Where,
Principal = 85,000
Rate = 12% per annum
Time = 5 months and 24 days, which is approximately 0.1864 years (calculated as (5 + 24/30) /
12)
Using the above formula, we can calculate the interest in each of the four methods:
Annual interest:
Simple Interest = (85,000 * 12 * 0.1864) / 100 = 19,228.80
Semi-annual interest:
Simple Interest = (85,000 * 6 * 0.0932) / 100 = 3,978.60
Quarterly interest:
Simple Interest = (85,000 * 3 * 0.0466) / 100 = 1,989.30
Monthly interest:
Simple Interest = (85,000 * 1 * 0.12) / 12 = 8,500
Therefore, Eleonora would get the following interest in each of the four methods: