A bank pays interest to its customers on the last day of the year.

A bank pays interest to its customers on the last day of the year. The interest paid to a customer is calculated as 10% of the average monthly balance maintained by the customer. John is a customer at the bank. On the last day, when the interest was accumulated into his account, his bank balance doubled to $2840. What is the average monthly balance maintained by John in his account during the year?

Quiz

Answer/Solution

14200

Steps/Work

Soln:-
Bank balance is doubled with accumulation of interest to 2840..
this means INTEREST is 2840/2=1420 for entire year..
although since interest is 10% of avg MONthly balance, it becomes 14200..
ANSWER:E