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If the interest rate on a savings account is 0.018%, approximately how much money do you need to keep in this account for 1 year to earn enough interest to cover a single $9.99 Below-Minimum-Balance Fee?

A. $55,555
B. $55
C. $555
D. $5,555

User Doza
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1 Answer

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The answer to this question would be: A. $55,555
In this question, the interest rate is 0.018% and you need to have $9.99 interest. That mean, you need to divide the target interest value with the current interest rate. The equation should be:

interest = bank account * interest rate
$9.99 = bank account * 0.018%
bank account = $9.99/ 0.018% (don't forget the % mean 1/100)
bank account = $55,500

If we assume that the $9.99 value is $9.99... then the answer would be $55,555
User Sean Zhao
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