Greg saved $6000 in his bank account. His account interest rate is 2.5%. What will be the amount of interest earned after 5 year
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Answer:
The minimum balance is $ 1,000
Step-by-step explanation:
According to the expression used to define the balance in Tim's account, at time t = 0:
Then, the initial balance in Tim's account is 1000 dollars. One year later, the balance in Tim's account will be:
And each subsequent year, the balance will increase in a factor of 1.06. The minimum balance in Tim's account is 1000, and there is no possibility that the balance could be less than that amount of money.