budget, payment plan
TEKS 8(1)(A), 8(1)(D), 8(12)(D)
Some banks charge an annual or monthly fee to have an account. The bank withdraws the fee at the end of the year or month, after interest has been calculated.
Example Analyzing Savings Account Options
A bank advertises two savings account options. The Lotts want to open an account with $1,800. They plan to keep the money in the account for 2 years. Which savings account would you recommend? Why?
Step 1 Find the balance of the Super Savings account after 2 years.
Use the compound interest formula.
table with 3 rows and 2 columns , row1 column 1 , b , column 2 equals p . open 1 plus r close to the n , row2 column 1 , , column 2 equals 1 comma 800 . open . 1 plus , 0.015 over 4 . close to the eighth , row3 column 1 , , column 2 almost equal to 1 comma , 854.71 , end table
The balance for the Super Savings account after 2 years is $1,854.71.