A how much interest does ibm earn each month b how much


The I've Been Moved Corporation receives a constant flow of funds from its worldwide operations. This money (in the form of checks) is continuously deposited in many banks with the goal of earning as much interest as possible for "IBM." One billion dollars is deposited each month, and the money earns an average of 1/2% interest per month, compounded continuously. Assume all the money remains in the accounts until the end of the month.

(a) How much interest does IBM earn each month?

(b) How much interest would IBM earn each month if it held the checks and made deposits to its bank accounts just four times a month?

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Business Economics: A how much interest does ibm earn each month b how much
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