6. On May 1, Cleveland Livingston opened a savings account that paid 3.5 percent exact interest at Fulton Savings Bank with a deposit of $5,000. Ten days later he deposited $2,000. Fourteen days later he deposited $8,000. No other deposits or withdrawals were made. Six days later the bank calculated the daily interest. a. How much simple interest did his money earn? b. How much was in the account at the end of the 30 days?
6. On May 1, Cleveland Livingston opened a savings account that paid 3.5 percent exact interest at Fulton Savings Bank with a deposit of $5,000. Ten days later he deposited $2,000. Fourteen days later he deposited $8,000. No other deposits or withdrawals were made. Six days later the bank calculated the daily interest. a. How much simple interest did his money earn? b. How much was in the account at the end of the 30 days?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
On may 1 Cleveland livingston opened a savings account that paid 3.5 percent exact interest at fulton savings bank with a deposit of 5,000. Ten days later he deposited 2,000. Fourteen days later he deposited 8,000. No other deposits or withdrawals were made. Six days later the bank calculated the daily interest.
Transcribed Image Text:5. On February 1, the balance in your account is $516.81. On July 1, you deposit
$310.90. Your bank pays 64 percent interest:
a. How much interest have you earned on July 1?
S13.43
b. What is your balance, including your deposit, on July 1?
827.71
879.44
c. How much interest have you earned on November 1?
d. What is your balance on November 1?
Some banks calculate the interest on a daily basis. The daily interest is added to the
account at the end of the month.
6. On May 1, Cleveland Livingston opened a savings account that paid 3.5 percent
exact interest at Fulton Savings Bank with a deposit of $5,000. Ten days later he
deposited $2,000. Fourteen days later he deposited $8,000. No other deposits or
withdrawals were made. Six days later the bank calculated the daily interest.
a. How much simple interest did his money earn?
b. How much was in the account at the end of the 30 days?
with Business Applications • Section 5-4 35
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