Question

Mariner Bank pays 6.5% interest, compounded daily. After finding the daily interest rate to the nearest millionths place) for November 19 (92 days in thequarter), calculate the interest eared on that date for an account with a balance of $4,000 (to the nearest whole cent).65 cents71 cents76 cents82 centsNone of these choices are correct.

Answer 1

To find the daily interest rate, divide the interest rate of 6.5% by 365 and report the result to the nearest millionth:

$\frac{6.5\text{ \%}}{365}=\frac{6.5}{100\cdot365}=0.000178$

If an account has a balance of $4,000, multiply that number times the daily interest rate of 0.000178 and substract the initial amount of $4000 to find the interest eared that day:

$\begin{gathered} 4000\times0.000178=4000.712 \\ 4000.712-4000=0.712 \end{gathered}$

Then, the interest eared in one day, is:

$71\text{ cents}$