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Roy average balance checking account pays simple interest of 4.8% annually and he made $2.25 in interest last month. What's was Roy's average balance last month?
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Roy average balance checking account pays simple interest of 4.8% annually and he made $2.25 in interest last month. What's was Roy's average balance last month?

User Samer Abu Gahgah
by
6.1k points

1 Answer

1 vote
The first thing you do is you divide the annual interest into 12 months
4.8 % / 12
Make sure that you convert the interest
So 0.048/12
Then you get the interest last month so that is
2.25/ (0.048/12)
The answer is 562.5
B.$562.5
User Adhamzhon Shukurov
by
6.2k points
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