Lucky Louie's Bank Requires a Minimum Balance at All Times

question 77

Multiple Choice

Lucky Louie's bank requires a minimum balance at all times of $1500 in order to provide free checking services. The bank pays .5% per annum interest on the minimum balance. If you do not maintain the balance, account service fees are $4 per month. Assuming Lucky can earn 2.5% on his money not sitting at the bank, what is his net benefit to maintaining the minimum balance?

• A) Not a benefit; he should invest his money elsewhere at 2.5%
• B) $18 per year benefit
• C) $48 per year benefit
• D) Breakeven

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Definitions:

Solve For X

A directive in mathematics and algebra to find the value of the variable x.

Solve For Y

A mathematical process aimed at finding the value of the variable 'y' in an equation or a set of equations.

Solve For C

A directive, often seen in mathematics, to find the value of the variable 'C' within an equation.

Pair Of Equations

Two equations that are considered together, often used in algebra to find the values of variables that satisfy both equations simultaneously.