Question

What would be your net earnings if you put $2500 in a savings account with an annual interest rate of 5% with a monthly fee of $5?

Answer 1

Net Earnings = $65

Explanation:

Money deposited in saving account = $2500

Interest rate = 5% pa = 5% of 2500 = $125

Fee = $5 (monthly). So annual fee = 12 x 5 = $60

So, net earning = Interest Earning - Annual Fee

= $125 - $60 = $65