A personal savings account has $4500.00 in it. The owner spends about $380.00 a month from this account. If an account must have a minimum of $1750.00 to be held without a monthly fee, how many months will it be free to own this account?
A 7 months
b. 5 months
c. 6 months
d. 4 months
To determine how many months the account will be free to own, we need to calculate how many months it will take for the balance to reach the minimum amount needed ($1750.00).
First, let's calculate how much money will remain in the savings account after one month of spending: $4500.00 - $380.00 = $4120.00
Next, let's calculate how much money will remain in the savings account after two months of spending: $4120.00 - $380.00 = $3740.00
We can continue this pattern to find out how many months it will take for the balance to reach $1750.00:
$3740.00 - $380.00 = $3360.00 (3 months)
$3360.00 - $380.00 = $2980.00 (4 months)
$2980.00 - $380.00 = $2600.00 (5 months)
$2600.00 - $380.00 = $2220.00 (6 months)
$2220.00 - $380.00 = $1840.00 (7 months)
So, the answer is option a. 7 months. After 7 months, the account balance will be $1840.00, which is above the minimum required amount of $1750.00. Therefore, the account will be free to own for 7 months.