If the interest rate on a savings account is 0.018%, approximately how much money do you need to keep in this account for 1 year to earn enough interest to cover a single $9.99 Below-Minimum-Balance Fee?
$55,555
$55
$555
$5,555
In this question, the interest rate is 0.018% and you need to have $9.99 interest. That mean, you need to divide the target interest value with the interest rate. The calculation would be:
interest = bank account * interest rate $9.99 = bank account * 0.018% bank account = $9.99/ 0.018% (don't forget the % mean 1/100) bank account = $55.500
Assuming that the $9.99 value is $9.9999... then the answer would be $55.555
