Question

If the interest rate on a savings account is 0.01%, approximately how much money do you need to keep in this account for 1 year to earn enough interest to cover a single $9.99 Below-Minimum-Balance Fee?

Answer 1

To get the the required amount to cover for the minmum balance fee for the account,  we will follow the formula for computation with compounding interest.F=P(1+i)^nwhereF= $9.99P= ?i=0.01%/12n=12F=$9.989 or $9.99The required amount is $9.99.