Jacob opens a savings account on Jan 1 with a deposit of $250. Every other week $25 is deposited. The bank charges $3 for a processing fee monthly. How much will he have at the end of the year?
If he kept his money at home in a coffee jar he would have
250 + 25(26) = $900
If he keeps it at this "bank" which pays no interest but charges you to deposit your money with them, you would have
250 + 25(26) - 12(3) = $864
To determine how much Jacob will have at the end of the year, we need to calculate the total amount of money deposited into his savings account and subtract any processing fees.
Step 1: Calculate the number of weeks in a year.
Since there are 52 weeks in a year, we'll divide the total weeks by 2 to account for Jacob depositing every other week.
52 weeks / 2 = 26 weeks
Step 2: Calculate the total deposit amount from the regular deposits every other week.
Jacob deposits $25 every other week, so we need to multiply this amount by the number of weeks in a year.
$25 deposit * 26 weeks = $650
Step 3: Calculate the total processing fee for the year.
The processing fee is $3 per month, so we need to multiply this amount by the number of months in a year.
$3 fee * 12 months = $36
Step 4: Subtract the processing fee from the total deposit amount.
Total amount = $650 - $36 = $614
Step 5: Add the initial deposit to the total amount.
Total amount = $614 + $250 = $864
Therefore, Jacob will have $864 in his savings account at the end of the year.
To calculate how much Jacob will have at the end of the year, we need to consider the regular deposits, the processing fees, and the interest earned on the savings account, if any.
First, let's calculate the total amount of deposits Jacob will make in a year:
- Jacob makes a $250 deposit on January 1.
- Every other week, he deposits $25.
Since there are 52 weeks in a year, Jacob will make 26 deposits of $25 each, totaling $650.
Next, let's calculate the total processing fees for the year:
- The bank charges $3 as a processing fee monthly.
- In a year, there are 12 months.
Hence, the total processing fees for the year will be $3 x 12 = $36.
Now, let's consider the interest earned on the savings account. Based on the provided information, we don't have any information regarding the interest rate or any compounding periods. Assuming there is no interest earned, we can exclude this from our calculations.
To find out how much Jacob will have at the end of the year, we can subtract the processing fees from the total deposits:
$250 (initial deposit) + $650 (regular deposits) - $36 (processing fees) = $864.
Therefore, Jacob will have $864 in his savings account at the end of the year.