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Calculating average daily balance and APY

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A depositor places $5,000 in a credit union deposit account for a full year but then withdraws $1,000 after 270 days. At the end of the year, the credit union pays her $300 in interest. What is this depositor's daily average balance and APY?

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Solution Summary

The solution describes the steps to calculate average daily balance and APY.

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Solution:

$5000 remains deposited for 270 days, Total of daily balance for 270 days=5000*270=$1,350,000

$1000 ...

Solution provided by:
Lokesh Jain, MSc
Education
  • BEng (Hons) , Birla Institute of Technology and Science, India
  • MSc (Hons) , Birla Institute of Technology and Science, India
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