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Question
Michelle has maintained an average balance of $300 per month for the first three months of the year, $800 per month for the next three months, and $1,000 per month for the final six months of the year in a NOW account. It requires a minimum balance of $500 to be maintained if annual interest of 5 percent is to be earned. She writes an average of 25 checks per month but the account does not have a service charge for checks although it costs the bank 10 cents to process each check.
What is Michelle's annual gross interest return?
A. $35.
B. $65.
C. $70.
D. $30.
E. $55.
Answer
This answer is hidden. It contains 47 characters.
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