Question

At River Bank, checking account customers earn 0.75% interest a month on their account balances, pay no service fees for writing checks, and pay a monthly $2.00 financial charge.Calculate the income earned in one month on the checking account for a customer with an account balance of $1,000.(1 point)Responses$4.25$4.25$5.50$5.50$6.75$6.75$7.25

Answer 1

Interest = 0.75% of $1,000 = 0.0075 × $1,000 = $7.50.
Net income = $7.50 − $2.00 charge = $5.50.

Answer: $5.50.