Bank D pays 7.289% effective annual yield on an investment account in which interest is compounded weekly. What is the annual in
2 answers:
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Answer:
It would have earned 15.91 dollars of interest
Explanation:
We will calcualte for compounding at each moment:
First, we will calculate for $6,500 for March 1st to March 15th:
Then, from March 16th to march 27th we calculate for $5,000 + accrued interest of the peri
and from March 28th to 31th we calcualte $5,700 + accrued interest
n = 15/365 days
m = 365
r = 0.0325
6508.69
Then we withdraw 1,500
And we calcualte for hte period marchth to March 27th for the currnet value: 5,008.69
Amount: 5,013.60
Then we deposit 700 and calcualte the rest of the month:
Amount: 5,715.64
We can now calcualtethe interest earned:
6,508.96 - 6,500 = 8.96
5,013.60 - 5,008.69 = 4.91
5,715.64 - 5,713.60 = 2.04
total interest = 15.91