Use the Following Information to Answer the Question: a Current

Multiple Choice

Use the following information to answer the question: A current deposit account requires a minimum balance of $500 if annual interest of 5% is to be earned monthly on its deposits.An account holder has maintained an average balance of $300 for the first nine months of the year and $800 for the last three months of the year.She has written an average of 20 cheques a month and is not charged for these services.However, it costs the bank $0.02 to process each cheque.What is the average return earned (both explicit and implicit) by the account holder over the full year?

A) 2.98%
B) 3.48%
C) 4.28%
D) 4.79%