Clara's savings account has an APR of 10.95% calculates interest daily and pays interest at the end of the month if during the month of september her balance was $700 for the first 10 days of the month, $1900 for the next 10 days of the month, and $1400 for the last 10 days of the month, how much total interest did clara earn in september A. $12.78B. $11.20C. $12.00D. $11.30
Accepted Solution
A:
Clara's average balance for the month was .. (700*10 +1900*10 +1400*10)/30 = 1333.33
The interest paid on that balance was .. 30/365*0.1095*$1333.33 = $12.00 . . . . . matches selection C