Ask Question
28 November, 01:12

You open a checking account. You are paid 3% interest on the average daily balance, but are charged a $4 monthly charge. Assuming that interest is paid monthly (regardless of the number of days in the month), calculate the average balance you must maintain to offset the $4 monthly charge.

+1
Answers (2)
  1. 28 November, 01:23
    0
    P = 1/RT = $4 / 3% * 1/12 = $4/.03 * 1 / 12 = $4/.0025

    You must maintain an average balance of $1,600.
  2. 28 November, 01:28
    0
    I = P*r*t

    4 = P*0.03 * (1/12)

    P = 48/.03 = 1600

    Your average daily balance must be $1600 to offset the fee.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “You open a checking account. You are paid 3% interest on the average daily balance, but are charged a $4 monthly charge. Assuming that ...” in 📗 Mathematics if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers