The Average Implicit Interest Rate Can Be Calculated as Follows

Multiple Choice

The average implicit interest rate can be calculated as follows: the difference between an FI's average:

A) management costs per account per year and the average fees earned per account per year, multiplied by the average annual size of the account.
B) management costs per account per year and the average fees earned per account per year, divided by the average annual size of the account.
C) fees earned per account per year and average management costs per account per year, multiplied by the average annual size of the account.
D) fees earned per account per year and average management costs per account per year, divided by the average annual size of the account.