Business Maths 2 :)

[xXNovaxX]

Hi

Just a question in the Business module in further mathematics, help would be appreciated . If possiblr could you please provide step by step or detailed explanations? and not just "the answer's D" or whatever


QUESTION 1 Interest on Terry's bank account is paid yearly on 30th June and is calculated on the minimum monthly balance. The interest rate is 6% p.a. For the year 1993-1994 the complete statement for Terry's account before adding interest is below.

DATE                          CREDIT                  DEBIT               BALANCE
30 june 1993                 Interest $37            -                        $2137    
13 April 1994                                            $1025                    $1112

Assuming no other deposits or further withdrawals are made after 13 April 1994, the total interest in dollars to be credited to this account on 30th june 1994 is given by the expression

A= 0.005*(2137*9+1112*3)
B 0.005*(2137*10+1112*2)
C= 0.005*(2000+2137*8+1112*3)
D= 0.06*(2137*9+1112*3)
E=0.06*(2137*10+1112*2)




QUESTION 2.
A savings account had a balance of $3000 on Jan 1st and only one transactions for the year which was a deposit of $1200 on June 20th. The account pays interest at a rate of 4.5% p.a. Find the interest payable for the year if it is calculated on the minimum monthly balance




 

[xXNovaxX]

somebody....

[khalil]

For the First one, they are asking for the MINIMUM MONTHLY balance, so given that the rate is per annum, divide by 12 to get 0.005. (.06/12).

The table is for 30 June 1993-30 June 1994. There are 12 months in between.
From 30 June to 13 April 1994 there are 9 months in between (not exactly)
From 13 April 1994 to 30th June 1994 there are remaining 3 months.

So for every month we have to calculate the min balance. from 30 June 1993 - 13 April 1994 the min monthly balance for EACH month is 2137.00. 9 months in between 2137*9

13 April 1994 to 30th June 1994  min monthly balance is 1112. So, 1112*3

The min monthly balance for 1 year is 1112*3+ 2137*9
Consider interest, 0.005*(1112*3+ 2137*9)
Thus ans A

[khalil]

2)

Similar to first 1

In short

3000*6+4200*61 = 43200
(4.5/100/12) * 43200 = 162

[xXNovaxX]

Thanks khalil much appreciated