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Assume that a depository institution promises 1 0 percent annual interest rate to the buyer of a $ 5 0 0 , 0 0 0

Assume that a depository institution promises 10 percent annual interest rate to the buyer of a $500,000 six-month (120-day) CD. That institutions interest calculation will be based on 365 days. The depositor (CD customer) will have one of the following at the end of six months:

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