Solve the Application Problem

Multiple Choice

Solve the application problem. If no interest rate is given, assume % interest compounded daily. Round to the nearest
cent.
-A publishing company deposited $200,000 in a 2-year time deposit earning 6% compounded daily with a Chicago bank as partial collateral for a loan. Find the compound amount and the interest earned.

A) Compound amount = $244,277.21;
Interest = $21,032.67
B) Compound amount = $421,032.67;
Interest = $1,032.67
C) Compound amount = $221,032.67;
Interest = $121,032.67
D) Compound amount = $221,032.67;
Interest = $21,032.67