Question
A savings account pays interest of 1.2%. Interest is calculated on the daily closing balance and paid at the close of business on the last
A savings account pays interest of 1.2%. Interest is calculated on the daily closing balance and paid at the close of business on the last day of the month. A depositor had a $2409 opening balance on September 1, deposited $904 on September 7 and $497 on September 21, and withdrew $470 on September 10.
What interest will be credited to the account at the month's end?
2)What will be the maturity value of $21,000 placed in a 120-day term deposit paying an interest rate of 2.35%?(Do not round intermediate calculations and round your final answer to 2 decimal places.)
Maturity value is $.
b.If, on the maturity date, the combined principal and interest are "rolled over" into a 60-day term deposit paying 2.15%, what amount will the depositor receive when the second term deposit matures?(Do not round intermediate calculations and round your final answer to 2 decimal places.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started