Mathematics of personal finance?

The balance of Aaron’s average balance checking account at the beginning of last cycle was $400, and the only transaction for the cycle was a check that Aaron wrote for $200, which cleared exactly half-way through the cycle. on what amount did Aaron’s checking account pay interest last cycle?

1 Answer

  • ?
    9 days ago

    Banks pay pay interest on a daily basis compounded 365 days a year. They would have paid interest on $400 for the first half of the month and $200 for the second half of the month. This averages out to $300. If this is a homework question, then the answer is $300.

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