Question

Azmir's checking account pays 0.75% interest monthly and has a $7.50 service fee. If Azmir's balance last month was $825, find the amount of credit or debit to his account after interest and service fee are both applied.

Answer 1

Debit of $ 1.31

Explanation:

Here, the initial amount in the account = $ 825,

Monthly interest on the amount = 0.75 % of initial amount

`=(825* 0.75)/(100)`

`=(618.75)/(100)`

`=$ 6.1875`

And, the service charge = $ 7.50,

Thus, the final amount = Initial amount + Monthly interest - Service charge

= $ 825 + $ 6.1875 - $ 7.50,

= $ 823.6875

So, the total changes in the amount = final amount - Initial amount

= $ 823.6875 - $ 825 = -1.3125 ≈ - 1.31

Since, negative sign shows the amount is debited,

Hence, the amount of debit to his account is $ 1.31.