Question

Someone please help !
Earl's savings account has an APR of 7.3%, calculates interest daily, and pays interest at the end of the month. If during the month of June, his balance was $400 for the first 10 days of the month, $1500 for the next 10 days of the month, and $600 for the last 10 days of the month, how much total interest did Earl earn in June?

Answer 1

I need help please

Answer 2

what part you need help with?

Answer 3

I don't understand how to solve it

Answer 4

400(.073/365)^10

1500(.073/365)^10

600(.073/365)^10

seems about right to me

Answer 5

when I try to solve it none of it is adding up to the answer choices
A. $3.00
B. $2.80
C. $5.00
D. $2.30

Answer 6

hmm, lets see if ive read it correctly

Answer 7

APR of 7.3%, calculates interest daily

i spose we could use 1+.073/365 to get a total balance at the end of 30 days

400 for 10 days: 400(1+.073/365)^10
1500 for 10 days: 1500(1+.073/365)^10
600 for 10 days: 600(1+.073/365)^10

2500 for 10 days should be the same thing ...

2500(1+.073/265)^10 = 2506.90

minus the 2500 would be about 7 bucks .. yeah, i see the issue

Answer 8

lol, 365 .. i typoed it

Answer 9

2500(1+.073/365)^10 = 2505

so about 5 bucks

Answer 10

lol yeah this problem confused me because I m usually good at math

Answer 11

even if we compounded at 360 we would still amount to about 5 bucks extra

Answer 12

the key is: each balance is compounded for 10 days, so just think of them as separate accounts and add up the results

Answer 13

im still confused is there a formula for this?

Answer 14

there is the compound interest formula:\[A=P(1+\frac rn)^{nt}\]

Answer 15

thankyou