To attract new customers, EP Employees Credit Union advertised that they will begin paying 3% interest every quarter on all savings accounts. (Their competitors pay interest every 6 months.) The credit union uses March 31st, June 30th, September 30th, and December 31st as quarterly interest periods. Determine (a) the end-of period totals in the account, and (b) the interest paid each quarter on the total. Assume there are no withdrawals and that quarterly interest is not redeposited. Month Deposit, $ Jan 50 Feb 70 Mar 0 Apr 120 May 20 June 0 July 150 Aug 90 Sept 0 Oct 40 Nov 110 Dec 0
To attract new customers, EP Employees Credit Union advertised that they will begin paying 3% interest every quarter on all savings accounts. (Their competitors pay interest every 6 months.) The credit union uses March 31st, June 30th, September 30th, and December 31st as quarterly interest periods. Determine (a) the end-of period totals in the account, and (b) the interest paid each quarter on the total. Assume there are no withdrawals and that quarterly interest is not redeposited. Month Deposit, $ Jan 50 Feb 70 Mar 0 Apr 120 May 20 June 0 July 150 Aug 90 Sept 0 Oct 40 Nov 110 Dec 0
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
To attract new customers, EP Employees Credit
Union advertised that they will begin paying 3%
interest every quarter on all savings accounts.
(Their competitors pay interest every 6 months.)
The credit union uses March 31st, June 30th,
September 30th, and December 31st as quarterly
interest periods. Determine (a) the end-of period
totals in the account, and (b) the interest paid
each quarter on the total. Assume there are no
withdrawals and that quarterly interest is not
redeposited.
Month Deposit, $
Jan 50
Feb 70
Mar 0
Apr 120
May 20
June 0
July 150
Aug 90
Sept 0
Oct 40
Nov 110
Dec 0
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