To determine how many months the account will be free to own, we need to calculate how many months it will take for the balance to reach the minimum amount needed ($1750.00).
First, let's calculate how much money will remain in the savings account after one month of spending: $4500.00 - $380.00 = $4120.00
Next, let's calculate how much money will remain in the savings account after two months of spending: $4120.00 - $380.00 = $3740.00
We can continue this pattern to find out how many months it will take for the balance to reach $1750.00:
$3740.00 - $380.00 = $3360.00 (3 months)
$3360.00 - $380.00 = $2980.00 (4 months)
$2980.00 - $380.00 = $2600.00 (5 months)
$2600.00 - $380.00 = $2220.00 (6 months)
$2220.00 - $380.00 = $1840.00 (7 months)
So, the answer is option a. 7 months. After 7 months, the account balance will be $1840.00, which is above the minimum required amount of $1750.00. Therefore, the account will be free to own for 7 months.
A personal savings account has $4500.00 in it. The owner spends about $380.00 a month from this account. If an account must have a minimum of $1750.00 to be held without a monthly fee, how many months will it be free to own this account?
A 7 months
b. 5 months
c. 6 months
d. 4 months
1 answer
1 answer