BUSINESS, FUR1 2003 VCAA 8 MC

The following is an extract from a bank account showing all transactions for the period 1 January to 30 June, 2003.

Interest on this account is calculated at a rate of `text(0.25%)` per month on the minimum monthly balance and paid into the account quarterly. Interest for the June period (April to June) is paid on 30 June.
The balance in the account after interest is paid on 30 June 2003 is

A. $6039.64

B. $6038.49

C. $6024.76

D. $6023.51

E. $6022.36

Show Answers Only

`B`

Show Worked Solution

`text(In April,)`

`text(Interest)`	`= 6452.4 xx text(0.25%)`
	`= 16.131`

`text(In May,)`

`text(Interest)`	`= 5992.4 xx text(0.25%)`
	`= 14.981`

`text(In June,)`

`text(Interest)`	`= text(same as May)`
	`= 14.981`

`:.\ text(Balance on 30 June 2003)`

`= 5992.4 + 16.131 + 2(14.981)`

`= 6038.4930`

`=> B`