If my checking account pays 3.4 % interest, how much would I earn per month if I maintain a $24,000.00 balance?
(0.034 * 24,000) / 12 = ?
Does that mean divided by 12?
sorry, i don't understand Ms Sue
Yes.
3.4% interest is for a year. You need to divide the year's interest by 12 to find the monthly interest.
Ms Sue,
I am not a student, just trying to find out this answer for personal reasons. Thanks for your help. I thing I multiply 3.4 time 24000 divided by 12 which is about 600 per month....right
Nope. Sorry.
You need to convert 3.4% to a decimal by moving the decimal point over two places to the left.
3.4% = 0.034
0.034 times $24,000 = your yearly interest
To find how much you'd get a month, divide your yearly interest by 12.
What do you get now?
816.00 divided by 12 I think
You're right. :-)
So you'd get $68 each month.
To calculate the amount you would earn per month on your checking account, you can follow these steps:
Step 1: Convert the annual interest rate to a monthly rate. Since the interest rate is given as an annual rate, you need to divide it by 12 to get the monthly rate. So, divide 3.4% by 12, which gives you 0.2833% (or approximately 0.002833 as a decimal).
Step 2: Calculate the monthly interest earned. Multiply the monthly interest rate by the balance in your checking account. So, multiply $24,000.00 by 0.002833 to get $68.00 (rounded to the nearest cent).
Therefore, if you maintain a balance of $24,000.00 in your checking account and it pays 3.4% interest, you would earn approximately $68.00 per month.