Q:

Henry savings account has an APR of 3.65 percent, calculate interest daily, and pays interest at the end of the month. If during the month November, his balance was $300 for the first 10 days of the month, $1200 for the next 10 days of the month and $800 for the last 10 days of the month how much total interest did Henry earn in November

Accepted Solution

A:
APR is the annual percentage rate. To get daily percentage rate, we need to divide APR by 365. We have,daily rate = Β [tex]3.65/365=0.01[/tex] (in percentage). In decimal it is [tex]\frac{0.01}{100}=0.0001[/tex].To get total interest, we calculate it accordingly:
For first 10 days, he gets daily interest of 0.01% on $300:[tex]300*10*0.0001=0.3[/tex]For next 10 days, he gets daily interest of 0.02% on $1500:[tex]1200*10*0.0001=1.2[/tex]For the last 10 days, he gets daily interest of 0.02% on $600:[tex]800*10*0.0001=0.8[/tex]Henry's total interest is the sum of these three,[tex]0.3+1.2+0.8=2.3[/tex] dollars.
ANSWER: $2.3