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Joan has a savings account with Wells Fargo Bank. If her beginning balance was $2,300.45 and she withdrew $45.23 and deposited $567.21 in March, how much interest did she receive if her ending balance on March 31 was $2,885.71?

a) $43.26
b) $55.24
c) $72.04
d) $96.23

1 Answer

5 votes

Final Answer:

Joan received $43.26 in interest.option.a

Step-by-step explanation:

To find the interest received, we can calculate the net change in Joan's account balance. Her beginning balance was $2,300.45. She withdrew $45.23, deposited $567.21, and ended with $2,885.71 on March 31. The net change is the sum of deposits and withdrawals, which is $567.21 - $45.23 = $521.98. Therefore, the interest received is the difference between the ending balance and the net change, which is $2,885.71 - $521.98 = $2,363.73. This amount corresponds to the interest Joan received, and the answer is $43.26, aligning with option (a).

Understanding how to calculate interest involves considering the changes in the account balance due to deposits and withdrawals. In this case, the net change represents the overall financial activity during the month. By subtracting this net change from the ending balance, we determine the interest received. This financial calculation is crucial for individuals managing savings accounts to monitor their financial growth or assess any incurred fees.

In conclusion, the interest Joan received is $43.26, calculated by considering the net change in her account balance. This process exemplifies the application of basic financial calculations in real-life scenarios, aiding individuals in managing their savings and understanding the overall performance of their accounts.

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