2.1.5 Since June 30, 2014 Smith has been making deposits of 100 each into a bank account on the last day of each month. For all of 2014 and 2015 Smith's account earned nominal interest com- pounded monthly at an annual rate of 9%. For the first 9 months of 2016 the account earned (12)=.105, and since then the ac- count has been earning (12) = .12. Find the balance in the account on each of the following days: (i) January 1, 2015, (ii) January 1, 2016, and (iii) February 1, 2017 Find the amount of interest credited on February 28, 2017.
2.1.5 Since June 30, 2014 Smith has been making deposits of 100 each into a bank account on the last day of each month. For all of 2014 and 2015 Smith's account earned nominal interest com- pounded monthly at an annual rate of 9%. For the first 9 months of 2016 the account earned (12)=.105, and since then the ac- count has been earning (12) = .12. Find the balance in the account on each of the following days: (i) January 1, 2015, (ii) January 1, 2016, and (iii) February 1, 2017 Find the amount of interest credited on February 28, 2017.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:2.1.5
Since June 30, 2014 Smith has been making deposits of 100 each
into a bank account on the last day of each month. For all of
2014 and 2015 Smith's account earned nominal interest com-
pounded monthly at an annual rate of 9%. For the first 9 months
of 2016 the account earned (12)=.105, and since then the ac-
count has been earning (12) = .12.
Find the balance in the account on each of the following days:
(i) January 1, 2015,
(ii) January 1, 2016, and
(iii) February 1, 2017
Find the amount of interest credited on February 28, 2017.
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