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1 of 8 0-day streak

Bank interest on a minimum monthly balance

Question 1 of 8

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During one month, a school savings account had a starting balance of $3,758.40, a minimum balance of $3,702.80, and an ending balance of $3,758.80

This fictional account uses a minimum-monthly-balance rule: interest is 2.5% per month on that minimum. This is a monthly, not annual, rate. All stated balances are before the month-end interest and listed fees; both are applied afterwards. Other accounts may use different rules

The monthly fee is a service fee of $0.85

(a)1 mark

How much interest is credited for the month? Give your answer to the nearest cent

Format: nearest cent
(b)1 mark

What is the signed net change from interest and fees? Use positive for a credit and negative for a debit; round to the nearest cent

Format: nearest cent