Answer:
A. $770.00
Step-by-step explanation:
We have been given that Regina's average balance checking account pays simple interest of 3.6% annually, and she made $2.31 in interest last month.
We will use simple interest formula to solve our given problem.
[tex]I=Prt[/tex], where,
[tex]I=\text{Amount of interest}[/tex],
[tex]P=\text{Principal amount}[/tex],
[tex]r=\text{Annual interest rate in decimal form}[/tex],
[tex]t=\text{Time}[/tex]
Let us convert our given interest rate in decimal form.
[tex]3.6\%=\frac{3.6}{100}=0.036[/tex]
Now we will divide 0.036 by 12 to find the monthly interest rate.
[tex]\frac{0.036}{12}=0.003[/tex]
[tex]\$2.31=P*0.003*1[/tex]
[tex]\$2.31=P*0.003[/tex]
[tex]\frac{\$2.31}{0.003}=P[/tex]
[tex]P=\$770.00[/tex]
Therefore, option A is the correct choice.
