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.

Name: 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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Question

Quizplus · Accepted Answer

(costs - fees)/avg. balance
(2,500 - 1,750)/100,000 = 0.0075.

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