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26 August, 10:35

Roy average balance checking account pays simple interest of 4.8% annually and he made $2.25 in interest last month. What's was Roy's average balance last month?

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  1. 26 August, 13:26
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    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
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