Problema Solution
On March 1, Tessa Obato deposited a check for 9, 364.85 in a savings account at State Bank. The account pays 4% interest calculated on daily basis. Five days later, on March 6, she withdrew $1,000.00. On March 18, 12 days later, she withdrew $2,000.00. On March 28, 10 days later, she withdrew another $2,000.00. Three days later, on March 31, the bank computed interest. How much simple interest did her money earn?
Answer provided by our tutors
March 1: $9,364.85
Five days later, on March 6 she withdrew $1,000.00:
On March 6, five days later, she had (before withdrawal): (0.04*5 + 1)9,364.85 = 11,237.82
On March 6, fice days later, she had (after withdrawal): 11,237.82 - 1000 = 10,237.82
On March 18, 12 days later she had (before withdrawal): (0.04*12 + 1)10,237.82 = 15,151.97
On March 18, 12 days later she had (after withdrawal): 15,151.97 - 2,000 = 13,151.97
On March 28, 10 days later she had (before withdrawal): (0.04*10 + 1) 13,151.97 = 18,412.76
On March 28, 10 days later she had (after withdrawal): 18,412.76 - 2,000.00 = 16,412.76
Three days later, on March 31 she has: (0.04*3 + 1)16,412.76 = 18,382.22
The interest is equal to: 18,382.22 - 9,364.85 = $9,017.27