For some reason I can't calculate this simple interest problem?

Answers:0   |   LastUpdateAt:2012-10-12 15:45:28  

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Norwood
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Management wishes to maintain a minimum cash balance of at least $ 4,000 at the end of each month . The company has an agreement with a local bank that allows the company to borrow in increments of $ 1,000 at the beginning of each month , up to a total balance of $ 20,000 . The interest rate on these loans is 1% per month , and for simplicity , we assume that the interest is not compounded. The company , to the extent they are able, to pay the loan plus accrued interest at the end of the quarter . MedlinePlus MedlinePlus During the first month the company a loan of $ 3,000 from the bank . (April ) MedlinePlus For the second month the company had a $ 7,000 loan from the bank (May ) MedlinePlus For the third month that the company had no need to borrow money at all MedlinePlus (June ) MedlinePlus So the end of April I just did ( $ 3,000 x .01 x 1 = $ 30) and by May I ( $ 7,000 x 01 x 1 = 70 ) and then added the two together gave me an interest in ( $ 100). This answer was wrong and then I realized I still had to calculate interest last month , so I made ( $ 10,000 x .01 x 1 = $ 100) and then tried to enter ($ 200) , which was a response wrong , and MedlinePlus MedlinePlus Who cares to explain why I can not calculate simple interest ?
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