Question

Becca's savings account has an APR of 2.65%, calculates interest daily, and pays interest at the end of the month. If during the month of November, her balance was $1300 for the first 10 days of the month, $1800 fr the next 10 days of the month, and $2800 for the last 10 days of the month, how much total interest did Becca earn in November?

Answer 1

Assuming it is calculating interest daily but does not COMPOUND interest daily. The solution for this problem is:

$1300.00 x 2.65% / 365 days x 10 days = $.94
$1800.00 x 2.65% / 365 days x 10 days = $1.30
$2800.00 x 2.65% / 365 days x 10 days = $2.03

The answer is: $4.27 = .94 + 1.30 + 2.03

Answer 2

Becca's savings account has an APR of 2.65% First 10 days of the month Becca has $1300.00 in her account Therefore $1300.00 x 2.65% / 365 days x 10 days = $0.94 Next 10 days she has $1800.00 Therefore $1800.00 x 2.65% / 365 days x 10 days = $1.30 And last 10 days of the month she has $2800.00 therefore $2800.00 x 2.65% / 365 days x 10 days = $2.03 Total interest Becca gets in the month of November $0.94 + $1.30 + $2.03 = $4.27 Becca earn total interest of $4.27