The beginning balance of Otto's savings account for the month of May was $1800, and it remained this way for the first 12 days of the month. On May 13, Otto made a withdrawal of $400, so his balance changed, and it remained the same for a total of 8 days. On May 21, Otto made a deposit of $1200, so his balance changed again, and
The beginning balance of Otto's savings account for the month of May was $1800, and it remained this way for the first 12 days of the month. On May 13, Otto made a withdrawal of $400, so his balance changed, and it remained the same for a total of 8 days. On May 21, Otto made a deposit of $1200, so his balance changed again, and
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
ChapterD: Notes Payable And Notes Receivable
Section: Chapter Questions
Problem 4P
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Question
The beginning balance of Otto's
savings account for the month
of May was $1800, and it
remained this way for the first
12 days of the month. On May
13, Otto made a withdrawal of
$400, so his balance changed,
and it remained the same for a
total of 8 days. On May 21, Otto
made a deposit of $1200, so his
balance changed again, and it
remained the same for a total of
11 days to finish out the month.
If Otto's savings account has an
APR of 7.3%, calculates interest
daily, and pays interest at the
end of the month, how much
did Otto earn in interest in the
month of May?
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