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

question 124

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.

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Definitions:

Platitudes

Overused statements or cliches that often lack originality or significance.

Pareto Efficient Allocation

A situation in economic theory where resources are allocated in such a way that it is impossible to make any one individual better off without making at least one individual worse off.

Pareto Optimal Allocation

A resource distribution scenario where no individual can be made better off without making at least one individual worse off.

Utility Function

A mathematical representation of how different combinations of goods or services provide levels of satisfaction or utility to an individual.