Answer:
$0.81
Step-by-step explanation:
Given;
Philip's average balance = $107.50
Annual Charges rate = 8.99% = 0.0899
The annual Charges can be calculated as;
Annual Charges = Average balance × rate
Substituting the values;
Annual Charges = 107.50 × 0.0899 = $9.66
The monthly charges can be derived from the annual Charges by dividing by the number of months in a year.
Monthly Charges = Annual Charges ÷ 12 month per year
Monthly Charges = $9.66 ÷ 12 = $0.805
Monthly Charge = $0.81
