Final answer:
To calculate the shrinking value of the account after 8 months with a 1.75% service fee per month, subtract the 1.75% fee from the previous balance each month. After 8 months, the account will have shrunk to approximately $54.13.
Step-by-step explanation:
To calculate the shrinking value of your account after 8 months, you will apply the 1.75% service fee per month. First, find the amount deducted for each month: 1.75% of $70 is $1.225. Subtract this amount from the original balance to get the new balance after the first month: $70 - $1.225 = $68.775. Repeat this process for each subsequent month by applying the service fee to the new balance. After 8 months, the account will have shrunk to approximately $54.13.