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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 $\$1,\!000$ 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?
 

Someone posted this question before, but the answer was incorrect.

 Apr 21, 2019

Best Answer 

 #1
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Jan. 1         $100             =$100
Feb.1         -$10 + $100 =$190
Mar.1         -$10 + $100 =$280
Apr.1         -$10 + $100 =$370
May 1        -$10 + $100 =$460
Jun.1         -$10 + $100 =$550
Jul. 1         -$10 + $100 =$640
Aug.1        -$10 + $100 =$730
Sep.1        -$10 + $100 =$820
Oct. 1       -$10 + $100 =$910
Nov.1        -$10 + $100=$1000
Dec. 1        $0   + $100 =$1,100
Dec.31        $1,100 x 1.01 =$1,111 - End of year one.
Dec.31       $1,111 + $1,200 =$2,311 x 1.01 =$2,334.11 - End of year two.
Dec.31       $2,334.11 + $1,200 =$3,534.11 x 1.01 =$3,569.45 = $3,569 - Balance at end of year three.

 Apr 21, 2019
 #1
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+1
Best Answer

Jan. 1         $100             =$100
Feb.1         -$10 + $100 =$190
Mar.1         -$10 + $100 =$280
Apr.1         -$10 + $100 =$370
May 1        -$10 + $100 =$460
Jun.1         -$10 + $100 =$550
Jul. 1         -$10 + $100 =$640
Aug.1        -$10 + $100 =$730
Sep.1        -$10 + $100 =$820
Oct. 1       -$10 + $100 =$910
Nov.1        -$10 + $100=$1000
Dec. 1        $0   + $100 =$1,100
Dec.31        $1,100 x 1.01 =$1,111 - End of year one.
Dec.31       $1,111 + $1,200 =$2,311 x 1.01 =$2,334.11 - End of year two.
Dec.31       $2,334.11 + $1,200 =$3,534.11 x 1.01 =$3,569.45 = $3,569 - Balance at end of year three.

Guest Apr 21, 2019

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