Math Problem Statement
The XYZ Bank pays Betty, simple interest at the rate of 5% per annum, on all funds in her account. Interest is calculated and credited to her account quarterly on March 31%, June 30", September 30th and December 31st, based on the minimum quarterly balance.
Betty has $ 80,000 in her account on January 1%. Given the following transactions to her account, determine (with all appropriate calculations), how much interest will be credited to the account on December 31st
- [9]
Date
Deposit
Jan 10
$ 2,500
Withdrawal
Mar 5
$ 4,000
Nov. 1
$ 13,000
Solution
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Math Problem Analysis
Mathematical Concepts
Simple Interest
Minimum Balance
Quarterly Interest Calculation
Formulas
Interest = (P × r × t) / 100
Where P is the principal (minimum balance), r is the interest rate, and t is the time in years (quarter is 1/4 year)
Theorems
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Suitable Grade Level
Grades 9-12
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