Question

Roy's average balance checking account pays simple interest of 4.8% annually, and he made $2.25 in interest last month. What was Roy's average balance last month?. . A.$56.25. B.$562.50. C.$5625. D.$5.63. . @ganeshie8

Answer 1

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