Respuesta :
Answer: Yes, the Average balance on the last month is $ 880.
Step-by-step explanation:
Let P be the balance on last month in his account,
Here, the annual rate of interest = 7.2 %,
Hence, the monthly rate of interest, r = [tex]\frac{7.2}{12}[/tex] = 0.6 %
Also, the interest for one month with this rate of interest = $ 5.28
And, Time, t = 1 month
Thus, By the formula of simple interest,
[tex]\frac{P\times r\times t}{100}=5.28[/tex]
[tex]\frac{P\times 0.6\times 1}{100}=5.28[/tex]
[tex]0.6P=528[/tex]
[tex]P=880[/tex]
Hence, the balance on the last month = $ 880.
Answer:
$880
Step-by-step explanation:
The simple interest is 7.2% per year or annually
Therefore to get monthly interest rate we divide 7.2% by 12
= 7.2/12
= 0.6 % per month
$ 5.28 = 0.6 %(average balance)
$ 5.28 = 6/1000
= ($ 5.28 × 1000)/6
= 880
= $ 880
