If the NCUA charges 6.3 cents per 100 dollars insured and Credit Union L pays $8,445 in NCUA insurance premiums, approximately how much is in Credit Union L’s insured deposits?
a.
$1.2 million
b.
$5.3 million
c.
$13.4 million
d.
$20.6 million

Question

If the NCUA charges 6.3 cents per 100 dollars insured and Credit Union L pays $8,445 in NCUA insurance premiums, approximately how much is in Credit Union L’s insured deposits?
a.
$1.2 million
b.
$5.3 million
c.
$13.4 million
d.
$20.6 million

tkhunny · Answer

If F is the required value, what do you suppose F/100 represents?

anonymous · Answer

idk @tkhunny

tkhunny · Answer

The pricing structure is based on every $100 of deposits.  L/100 is the number of chunks of cash of $100 each.

Examples:

$3000 ==> $3000/$100 = 30 hundred dollar pieces of cash to charge the fee.
$653000 ==> $653000/$100 = 6530 hundred dollar pieces of cash to charge the fee.

This is what is needed to solve the problem.