Interest on a savings account is calculated at 0.3% per month based on the minimum monthly balance. The following statement lists all the transactions on an account for January–March one year. The interest, in dollars, for the month of February is:

Question

BlackTom AI · Accepted Answer

To find February's interest, we need the minimum monthly balance during February and apply 0.3% (0.003) to that amount.

First, examine the balance timeline: at the end of January the balance is 275.00. On January 7 a withdrawal reduces it to 225.00. February 3 shows a deposit of 846.10, bringing the balance up to 1071.10. Then on February 4 a withdrawal of 250 reduces it to 821.10.

Now, determine the minimum balance in February. The balance at the start of February, after January activity, is 225.00 and there are no deposits until February 3. Therefore, the February minimum balance is 225.00.

Compute interest: 0.3% of 225.00 equals 0.003 × 225 = 0.675. When expressed in dollars and cents, this rounds to 0.68.

Option-by-option analysis:
- a. $0.83 — This would correspond to 0.003 × 276.666... or using 0.3% of a higher minimum balance (around 276–277). Since the actual minimum is 225, this is incorrect.
- b. $0.68 — Correct, because 0.3% of the minimum February balance 225.00 equals 0.675, which rounds to $0.68.
- c. $3.2 — This would imply an interest rate or balance far larger than the February minimum; not consistent with 0.3% of any plausible February minimum here.
- d. $2.46 — Similarly too large for 0.3% of the balances shown; would require a balance around 820–820-something, which does not match February's minimum.
- e. $2.54 — Also too large given the computed 0.675 before rounding; would require a much higher minimum balance than 225.

In summary, applying the monthly interest rate to the correct minimum balance leads to $0.68 for February.

Interest on a savings account is calculated at 0.3% per month based on the minimum monthly balance. The following statement lists all the transactions on an account for January–March one year. The interest, in dollars, for the month of February is:

查看解析

登录即可查看完整答案

类似问题

A customer of a bank has $275,000 in surplus funds that need to be invested for a short period of time. The bank offers to sell a 90-day negotiable certificate of deposit (CD) to the customer at a yield of 6.45 per cent per annum. Advise the customer of the dollar return on the CD.

A bank, in a 365-day year country, accepts a $2m deposit to mature in 270 days and will pay 2.33% p.a. on the deposit. How much interest will it pay?