Question

You have $1000 in an account that pays 12% interest compounded monthly.

If you take out $50 a month, how many months will your money last?

Answer 1

shoulda used a bigger starting balance i think lol

Answer 2

lets use 10,000 starting balance ;)

Answer 3

The interest earned the first month is 1% of $10,000, which is $100. Your account now has $50 more. The account continues to grow from one month ro the next. A zero balance is never reached.

Answer 4

At the end of n months, your balance will be
$5,000(1 + 1.01^n).

Answer 5

by mathematics induction.
we can show that next month we have more than 1000 $ in bank.
and we can show if it increases for first month, it should increases for second month.
x=1000 , a=112/100
B.c. Assume that x<ax-50 {is true}
I.S. ax-50< (ax-50)a - 50

x<ax-50 *a : ax<x.a^2 -50a
-50 :ax-50<(ax-50)a-50

we show P(k) implies P(k+1)

Answer 6

I prefer to have this amount of money and then calculate:)

Answer 7

it so hard to come up with questions; shoulda changed it to like 120 withdrawal next time :) thanx