Solved

What Is the Average Implicit Interest Rate on a $100,000

Question 100

Multiple Choice

What is the average implicit interest rate on a $100,000 account if the bank's average management costs are $2,500 and annual fees average $1,750?

A) 4.25 percent.
B) 2.50 percent.
C) 1.75 percent.
D) 0.75 percent.
E) -0.75 percent. (costs - fees) /avg.balance
(2,500 - 1,750) /100,000 = 0.0075

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