A building society adds interest monthly to investors' accounts even though interest rates are expressed in annual terms. The current rate of interest is 6% per annum.An investor deposits $1,000 on 1 January. How much interest will have been earned by 30 June?
A、$30.00
B、$30.38
C、$60.00
D、$300
A、$30.00
B、$30.38
C、$60.00
D、$300
【参考答案及解析】
Current rate is 6% pa payable monthly... Effective rate is 6/12% = compound every month... In the six months from January to June, interest earned =($1,000 x [1.005]6) - $1,000 = $30.38Option A is incorrect since it is simply 6% x $1,000 = $60 in one year, then divided by 2 to give $30 in six months.Option C represents the annual interest payable (6% x $1,000 = $60 pa).Option D is also wrong since this has been calculated (incorrectly) as follows.0.05 x $1,000 = $50 per monthOver six months = $50 x 6=$300 in six months
Current rate is 6% pa payable monthly... Effective rate is 6/12% = compound every month... In the six months from January to June, interest earned =($1,000 x [1.005]6) - $1,000 = $30.38Option A is incorrect since it is simply 6% x $1,000 = $60 in one year, then divided by 2 to give $30 in six months.Option C represents the annual interest payable (6% x $1,000 = $60 pa).Option D is also wrong since this has been calculated (incorrectly) as follows.0.05 x $1,000 = $50 per monthOver six months = $50 x 6=$300 in six months