Question

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?

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