If Mr. Black receives a monthly interest payment of $440 from his savings account earning 6% interest, how much does he have in his account?

To determine how much Mr. Black has in his account, we can use the formula for calculating interest. The formula is:

Interest = Principal x Rate x Time

In this scenario, Mr. Black receives $440 as monthly interest. The annual interest rate is 6%, which translates to a monthly interest rate of 0.5% (since 6% divided by 12 months equals 0.5%).

We can rearrange the formula to solve for the Principal (the amount in the account):

Principal = Interest / (Rate x Time)

Here, the period of time is one month, making the formula:

Principal = $440 / (0.005)

Calculating this gives us:

Principal = $440 / 0.005 = $88,000

However, this value represents a misunderstanding of monthly payments; we want to find out what balance would yield $440 in interest at 6% per annum. The correct calculation keeping in mind the monthly frequency of interest payments should focus on the annual rate over a year, leading us to the direct multiplication of the monthly interest:

So to find the annual equivalent, since $440 is for one month, we must multiply by 12 to reflect the annual interest earned, leading