What is Interest on Cash?
Interest on Cash meaning Cash is money in a bank account, so interest on cash is any payment a bank makes on this deposit. In The Stock Market Game, a team receives a weekly interest payment on its average daily cash balance. Since there are 52 weeks in a year, this annual rate is divided by 52 to yield the weekly rate of interest. Here is the calculation of interest on cash.
Interest on Cash = Average Daily Cash Balance During a Week x (Current Interest Rate Received / 52)