Answer to Question #285184 in Math for agh

Question

A. Solve the following problem

1. You open a checking account. You are paid 3% interest on the average balance but are charged a 7 monthly charge. Assuming that interest is paid monthly regardless of the number of days in the month, calculate the average daily balance you must maintain to offset the 7 monthly charge.

2. You decide to pay off a 9% 3,000 loan early. The bank tells you that you owe 111.70 interest. Assuming that the bank uses a 365 day year, for how many days are you being charged interest?

3. You borrow 200 from your aunt and agree to repay her 225 (200 principal + 25 interest) in 18 months. What interest rate are you paying.

B.

1. Twenty thousand pesos is a deposit in an account that pays 8% interest. Find the account balance after 10 years if the interest is compounded quarterly.

2. John deposit 5,000 pesos in a bank paying 12% compounded quarterly. After 4 years, John decided to close her account. How much money would she be able to get from bank?