Question

Linda’s savings account has fallen below the $1,000 minimum balance required to receive interest. It is currently $871.43. The monthly fee charged by the bank for falling below the minimum is x dollars. Express algebraically how you compute the number of months it will take Linda’s account to reach a zero balance if she makes no deposits. Explain. If x = 9, how many will it take?

Answer 1

`N = (871.43)/(x)` months

For x = 9, the number of months will be 96.83.

Explanation:

Linda’s savings account has fallen below the $1,000 minimum balance required to receive interest. It is currently $871.43. The monthly fee charged by the bank for falling below the minimum is x dollars.

Now, the number of months it will take Linda's account to reach a zero balance will be given by

`N = (871.43)/(x)` months. (Answer)

Now, if x = 9, then
`N = (871.43)/(9) = 96.83` months. (Answer)