Question

Larry's small business has $99,200 in its bank account and makes automatic monthly payments that total$12,400, If he stops making deposits to that account when would the automatic payments make thevalue of the account zero?The value of the account would be zero in months.

Answer 1

Let 'x' be the amount of months that the automatic payments are made. If at first Larry has $99,200 in his account and every month $12,400 are substracted from that amount we can model the situation when the total amount is zero as:

$99,200-12,400x=0$

If we solve for x we find when the value of the amount will be zero:

$\begin{gathered} 99,200=12,400x \\ x=\frac{99,200}{12,400}=8 \end{gathered}$

The value of the account would be zero in 8 months.