A personal savings account has $3000.00 in it. The owner spends about $280.00 a month from this account. If an account must have a minimum of $1250.00 to be held without a monthly fee, how many months will it be free to own this account?
5 months
3 months
6 months
4 months
To calculate the number of months the account will be free to own, we need to divide the initial balance by the monthly spending and then subtract the minimum required balance.
Number of months = (Initial balance - Minimum required balance) / Monthly spending
Number of months = ($3000 - $1250) / $280
Number of months = $1750 / $280
Number of months ≈ 6.25
Therefore, the account will be free to own for approximately 6 months.
The closest option to this answer is 6 months.