Asked by Alexis Quackenbush on May 11, 2024
Verified
An Investment Savings account offered by a trust company pays a rate of 0.25% on the first $1,000 of daily closing balance, 0.5% on the portion of the balance between $1,000 and $3,000, and 0.75% on any balance in excess of $3,000. What simple interest will be paid for the month of April if the opening balance was $2,439, $950 was deposited on April 10, and $500 was withdrawn on April 23?
Investment Savings
Funds set aside in financial instruments or accounts with the goal of generating income or profit over time.
Simple Interest
Interest earned only on the original principal amount, without compounding.
Daily Closing Balance
The amount of money in an account at the end of each business day, after all transactions have been accounted for.
- Ascertain the interest gained or owed during a certain period, reflecting changes in rates and principal amounts.
Verified Answer
K?
Learning Objectives
- Ascertain the interest gained or owed during a certain period, reflecting changes in rates and principal amounts.