Question

The balance of Aiko's average balance checking account at the beginning of last cycle was $100, and the only transaction for the cycle was a check that Aiko wrote for $50, which cleared exactly halfway through the cycle. On what amount did Aiko's checking account pay interest last cycle?

A. $75
B. $100
C. $150
D. $50
@Directrix @SWAG @Jemurray3 @plitter @hartnn @ash2326

Answer 1

@divagirl421 See if you think this logic from @TomV is correct:

Depends on how the bank calculates the "average balance". If it uses the average daily balance method, and assumes 30 days per month, the balance was 100 for 15 days and 50 for 15 days for an average daily balance of (100*15 + 50*15)/30 = $75.

http://tinyurl.com/ndfo2sf