18-97 a DI Offers a $500 Minimum Balance NOW Account

18-97 A DI offers a $500 minimum balance NOW account paying 5.5 percent annual interest.The account has a service charge of $0.05 per check,and processing costs per check are $0.15.The customer maintains a balance of $1,000,and averages 150 checks per year.What is the annual gross interest return on this account to the customer?

A) $22.50.
B) $70.00.
C) $15.00.
D) $55.00.
E) $7.50.