At the End of April, Brad Had $7,500 in His

question 46

Multiple Choice

At the end of April, Brad had $7,500 in his daily interest savings account. On the 13^th of May he deposited another $3,500. He made no other deposits or withdrawals in May. The interest rate throughout May was 3.7%. How much interest did Brad earn on this savings account in May?

• A) $16.83
• B) $30.31
• C) $21.99
• D) $39.52
• E) $46.17

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Definitions:

Interest Rates

The cost of borrowing money or the return for investing money, typically expressed as a percentage of the principal amount annually.

Government Spending

Expenditures by government agencies on goods and services that influence the economy, including investments, social services, and defense.

Reserve Requirements

The minimum amount of funds that a bank is required to hold in reserve, determined by central banking authorities, to ensure that the institution remains liquid.

Monetary Control

Monetary Control involves the regulation of the money supply and interest rates by central banks to manage economic stability and growth.