Question

A college student is looking at her monthly checking account records. On September 1, 2008, her checking account held a balance of $1,050. At the end of March 2009, her checking account held a balance of $800. What is the monthly rate of change for the student’s checking account over the period September 1, 2008 through March 31, 2009?

Answer 1

The change in balance is 800-1080=-280. The number of months is 7 months from Sep to Mar. So that’s -280/7=-$40 per month.

Answer 2

The monthly rate of change would be $35.71 a month

Explanation:

There are 7 months between September 1 and the end of March of next year

The difference between the initial balance and the ending one is

1050 - 800 = 250

If we divide this amount between the 7 months, we get 250/ 7 = 35.71

The monthly rate of change would be -$35.71 per month.