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You put $500 in an interest bearing bank account that pays 2% per year but has a fee of $2 per month. Are you getting ahead?

a.Yes
b.No
c.Can't tell

2 Answers

1 vote

Answer:

b.No

Step-by-step explanation:

User Oleg Chirukhin
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The answser is that you are not getting ahead.

2% or $500 is 2*500/100 = $10.

Then, if you keep the $500 you will earn $10 in a year.

But the bank is takind $2 each month, so definetly you will earn less than $10 in a year.

An dhte bank will take $2 * 12 = $ 24 from you in a year.

By earning less than $10 the first year and lossing $ 24 the same year you will end with less than $ 500 and every year you will se your money decreasing.

Answer:b. No.
User Jason Stirk
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6.5k points