How much money (in dollars) will he have at the end of the year?

Question

Jacob opens a savings account on January 1 with a deposit of $350. He has "direct deposit," so $35 is deposited into the account every other week starting January 8. The bank also charges a $3 monthly processing fee. How much money (in dollars) will he have at the end of the year? (Assume that there are 52 weeks in the year and that the account does not accrue interest.)

Answer 1

Hi Tim,

We know that for the year Jacob initially placed $350 and at the end of the year he will lose $36 (12months x $3 fee). To find how much money is in the account at the end of the year we can use this equation:

y=35x+(350-36). 'y' is the amount at the end of the year, 'x' is the number of times that Jacob deposits the bi-weekly $35. We have to make sure to keep in mind that the $35 is only deposited after the first week passes!

y= 35(51/2)+314

y=35(25)+314 We used 25 here instead of 25.5 because he will not deposit the $35 in the middle of a week.

y= $1189