Asked by Eytan Weisz on May 01, 2024
Verified
The cash balance in Amalia's account with her stockbroker earns interest on the daily balance at an annual rate of 4%. Accrued interest is credited to her account every six months-on June 30 and December 31. As a result of the purchase and sale of securities from time to time, the account's balance changed as follows:
Investment date Amount invested Interest rate M
What interest was credited to Amalia's account on June 30? The brokerage firm includes interest for both January 1 and June 30 in the June 30 payment. Assume that February had 28 days.
Annual Rate
the interest rate for a whole year, rather than just a shorter period.
Accrued Interest
The interest on a loan or bond that has accumulated since the principal investment, or since the last interest payment, if there has been one.
Daily Balance
A method of calculating interest where the amount owed or due is recalculated each day, based on the balance of the account at the end of each day.
- Determine the amount of interest credited to accounts over specific periods.
Verified Answer
MM
Learning Objectives
- Determine the amount of interest credited to accounts over specific periods.