Question

Greg's average balance checking account pays simple interest of 5.4% annually, and he made $7.20 in interest last month. What was Greg's average balance last month?​

Answer 1

Greg's average balance last month was $ 1,600.

Step-by-step explanation:

Given that Greg's average balance checking account pays simple interest of 5.4% annually, and I have made $ 7.20 in interest last month, to determine what was Greg's average balance last month the following calculation must be performed:

5.4 / 12 = 7.20

100 = X

0.45 = 7.20

100 = X

100 x 7.20 / 0.45 = X

720 / 0.45 = X

1600 = X

Therefore, Greg's average balance last month was $ 1,600.