EOQ

Hi John and Team I really hope I am allowed to ask this question here, it's from the Kaplan text and I do not have anyone else to ask. Q35 from the back of the book A manufacturer uses 100,000 components costing $1 each at a constant rate throughout the year. The cost of making a single order for more components is $10 and the holding costs for each component are 0.5% of the average inventory value. What is the EOQ? A 1,411 B 14,142 C 20, 000 The correct answer is C, 20,000. I obtained the correct values for the demand( 100,000) and order costs($10), but the value for the holding costs is given as 0.005, I got 0.05. Please could someone shed light on how they obtained this. How were you meant to work out the average inventory value from the information given? Many thanks Sarah