Question

If the fdic charges bank e 2.4 cents per 100 dollars insured, how much must bank e pay to insure $4.8 million in deposits?

a. $1,152
b. $115,200
c. $2,112
d. $211,200

Answer 1

A

Explanation:

Edge 2020 :) got it right

Answer 2

If a bank charges 2.4 cents per $100, then you should count how many $100 will be in $4.8 million.

Since $4.8 million = $4,800,000, then

`(\$4,800,000)/(\$100)=48,000` - the number of $100 in $4.8 million.

Now multiply 48,000 by 2.4 cents to get the amount of cents earned:

`48.000\cdot 2.4=115,200` cents.

You know that 100 cents = $1, then 115,200 cents is $1,152.

Answer: correct choice is A