Answer:
The correct answer is US$ 2,252.80
Step-by-step explanation:
1. Let's review all the data that was given to us in the question.
Deposit at the start of the year = US$ 51,200
Interest rate on growth funds account = 4 2/5%
2. For calculating the annual income of the account, we'll need to do the following calculation:
Annual income = Deposit at the start of the year * Interest rate
Annual income = 51,200 * 4 2/5%
Annual income = 51,200 * 4,4% (2/5 = 0.4)
Annual income = US$ 2,252.80
The annual income of a US$ 51,200 growth funds account at 4 2/5% is US$ 2,252.80
