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# Algebra

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It's January 1st, and Jillian is starting a new savings plan. Her savings account charges a \$10 monthly fee for any month where she does not have an ending balance of \$1000 or higher. At the beginning of each month, she deposits \$100 into her account. At the end of the year, her bank awards her an interest at the rate of 1%, rounded to the nearest dollar, calculated on the ending balance.

After three years, what is her ending balance after interest?

Dec 15, 2018

### 1+0 Answers

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For the first 11 months, she is effectively depositing [ 100 - 10] = \$90 per month into her account because of the service charge being applied every month

So...at the end of 11th month, she has  11 * 90   =  \$990 in her account

At the start of the 12th month she deposits \$100 into her account and now has \$1090 in her account.....so....she will not  have to pay the \$10 service charge any longer

The account balance at the end of the first year is :   1090 (1.01) = \$1100.90 = \$1101

At the end of the second year   the account balance is

[ 1101 + 12(100)]*(1.01)   = \$2324.01 =  \$2324

At the end of the third year, the account balance is

[ 2324 + 12(100) ] (1.01)  = \$3559.24  =  \$3559

Dec 15, 2018