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If the interest rate on a savings account is 0.01%, approximately how much money do you need to keep in this account for 1 year to earn enough interest to cover a single $9.99 Below-Minimum-Balance Fee?
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If the interest rate on a savings account is 0.01%, approximately how much money do you need to keep in this account for 1 year to earn enough interest to cover a single $9.99 Below-Minimum-Balance Fee?

User Sean Fujiwara
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1 Answer

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To get the the required amount to cover for the minmum balance fee for the account,  we will follow the formula for computation with compounding interest.F=P(1+i)^nwhereF= $9.99P= ?i=0.01%/12n=12F=$9.989 or $9.99The required amount is $9.99.
User Shevach
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