Question
A credit union posts the following tiered interest rate structure for its savings accounts. Only each tier is subject to the posted rate and is
A credit union posts the following tiered interest rate structure for its savings accounts. Only each tier is subject to the posted rate and is computed using the daily opening balance in the account. Interest is deposited to the account on the last day of every month.
Balance | Interest Rate |
$0$4,000.00 | 0.15% |
$4,000.01$8,000.00 | 0.25% |
$8,000.01 and up | 0.45% |
On August 1, the opening balance was $6,400. Three deposits of $2,000, $3,500, and $1,500 were made on August 3, August 10, and August 27, respectively. Two withdrawals of $7,000 and $1,900 were made on August 6 and August 21, respectively. Compute the total interest earned for the month of August.
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