A Savings Account Pays Interest of 1

question 103

Short Answer

A savings account pays interest of 1.5%. Interest is calculated on the daily closing balance and paid at the close of business on the last day of the month. A depositor had a $2,239 opening balance on September 1, deposited $734 on September 7 and $627 on September 21, and withdrew $300 on both September 10 and September 21. What interest will be credited to the account at the month's end?

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Definitions:

Practical Standards

Realistic expectations for performance or output that take into account potential variances and are used for benchmarking and measuring actual performance.

Standard Costing

Standard costing involves assigning a fixed cost to production and inventory for the purpose of budgeting and performance evaluation, allowing companies to identify variances and control costs.

Machine Breakdown

The failure of a machine to function, causing a halt in production or operations.

Material Quantity Variance

The difference between the actual quantity of materials used in production and the standard quantity expected, multiplied by the standard cost per unit.