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3-50 The I've Been Moved Corporation (IBM) re- ceives a constant flow of funds from...

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Accounting

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3-50 The I've Been Moved Corporation (IBM) re- ceives a constant flow of funds from its world- wide operations. This money (in the form of cheques) is deposited continuously in many banks with the goal of earning as much inter- est as possible for IBM. One billion dollars is deposited each month, and the money earns an average of0.5% interest a month, compounded continuously. Assume all the money remains in the accounts until the end of the month. (a) How much interest does IBM earn eaclh month? (b) How much interest would IBM earn each month if it held the cheques and made de- posits to its bank accounts just four times a month

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