104. A $52,400 investment shows annual earnings of 8.5%. To the nearest dollar, what is the monthly income on the investment?
Answer: B
The monthly income on the investment is $371.
To calculate the monthly income from the investment, we first find the annual earnings by multiplying the investment amount by the annual interest rate. In this case, $52,400 multiplied by 8.5% results in an annual income of $4,454, which when divided by 12 months gives a monthly income of approximately $371.
A) $356
Option A is incorrect because it underestimates the monthly income. The annual earnings calculated from the investment amount and interest rate yield a total of $4,454, which when divided by 12 months does not support the figure of $356.
B) $371
Option B is correct as it accurately reflects the calculated monthly income derived from the $52,400 investment at an 8.5% annual return. This calculation demonstrates that the monthly income is indeed $371, affirming the accuracy of this choice.
C) $409
Option C is incorrect because it overestimates the monthly income. The calculations show that the annual income is $4,454, which translates to a monthly amount significantly lower than $409 when divided by 12.
D) $449
Option D is also incorrect as it presents an inflated figure for the monthly income. The correct computation of the annual earnings shows that dividing the total annual returns by 12 results in a monthly income far less than $449.
Conclusion
The correct answer is $371, derived from dividing the total annual earnings of $4,454 by 12 months. Options A, C, and D fail to accurately represent the monthly income based on the provided investment and interest rate, confirming that the calculations accurately support Option B.