Question

A bank charges a monthly fee if the average monthly balance of your account is less than $5000. The table shows the balance of your account the first four months it is open. Find the average monthly balance of your account after the fourth month. Do you have to pay the fee after the fourth month?

Month 1 : $4801.50
Month 2 : $5198.42
Month 3 : $5254.36
Month 4 : $4932.87

Answer 1

no you dont have to pay

Answer 2

No, we don't have to pay the fee after the fourth month.

Explanation:

It is given that a bank charges a monthly fee if the average monthly balance of your account is less than $5000.

The table shows the balance of your account the first four months it is open.

Month 1 : $4801.50

Month 2 : $5198.42

Month 3 : $5254.36

Month 4 : $4932.87

Formula for average:

`Average =(\sum x)/(n)`

where, n is the number of observation.

The average of four months balance is

`Average =(4801.50+5198.42+5254.36+4932.87)/(4)`

`Average =(20187.15)/(4)`

`Average =5046.7875`

Since the average balance of 4 months is more than 5000, therefore we don't have to pay the fee after the fourth month.