if the fdic charges bank e 2.4 cents per 100 ...
if the fdic charges bank e 2.4 cents per 100 dollars insured, how much must bank e pay to insure $4.8 million in deposits? a. $1,152 b. $115,200 c. $2,112 d. $211,200 please select the best answer from the choices provided
Answer
# Answer:
A. $1,152
# Explanation:
## Step1: Convert 4.8 million to number
$4.8\times10^{6}$
## Step2: Set up proportion
Let $x$ be the amount Bank E pays. The proportion is $\frac{2.4}{100}=\frac{x}{4.8\times 10^{6}}$.
## Step3: Cross - multiply
$100x = 2.4\times4.8\times 10^{6}$.
## Step4: Calculate right - hand side
$2.4\times4.8\times 10^{6}=11.52\times 10^{6}=11520000$.
## Step5: Solve for $x$
$x=\frac{11520000}{100}=115200$ cents.
## Step6: Convert cents to dollars
Since 1 dollar = 100 cents, $x = \frac{115200}{100}=1152$ dollars.