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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Definitions:

Frog Parasite

An organism that lives in or on frogs, deriving its nutrients at the host's expense, often resulting in disease or discomfort for the frog.

Edible Fruiting

The process or quality of bearing fruits that can be safely and nutritionally consumed by humans and animals.

B. Dendrobatidis

A pathogenic fungus causing the deadly disease chytridiomycosis in amphibians, contributing to declines and extinctions of amphibian populations worldwide.

Frog Parasite

A parasitic organism that lives on or within a frog, extracting nutrients at the host's expense, potentially causing harm or disease.