What is the interest rate on Ivy's account with a balance of $6,800 that earns $68 monthly in interest?

To determine the interest rate on Ivy's account, we can use the formula for calculating the monthly interest rate. The formula is as follows:

[ \text{Interest Rate} = \left( \frac{\text{Interest Earned}}{\text{Account Balance}} \right) \times 100

]

In this case, Ivy earns $68 in interest monthly on her account balance of $6,800. Applying the values to the formula gives us:

[ \text{Interest Rate} = \left( \frac{68}{6800} \right) \times 100 ]

Calculating the fraction yields:

[ \frac{68}{6800} = 0.01 ]

Now, multiplying this by 100 converts the decimal to a percentage:

[ 0.01 \times 100 = 1% ]

This figure represents the monthly interest rate. However, to find the annual interest rate, which is typically how interest is expressed, we multiply the monthly interest rate by 12:

[ 1% \times 12 = 12% ]

This shows that the annual interest rate is 12%. Thus, the correct choice is the one that