5 Points]
PREVIOUS ANSWERS BRECMBC9 4.11.004.
ou are looking for a bank in which to open a checking account for your new part-time business. You estimate that in the first year, you will be writing 30
ransactions per month. Your average daily balance is estimated to be $900 for the first six months and $2,400 for the next six months.
Use the following information to solve the problem.
DETAILS
Bank
Bank 1
Bank 2
Bank 3
Bank 4
Bank 1
Bank 2
Bank 3
$
Bank 4 $
Monthly Fees and Conditions
$16.00 with $1,000 min. daily balance
-or-
$25.00 under $1,000 min. daily balance
$
$4.50 plus $0.30 per check over 10 checks monthly
$1.00 per debit transaction
$5 plus $0.25 per check
$2.00 per debit transaction
(a) Calculate the cost (in $) of doing business with each bank for a year.
$
$8 plus $0.15 per check
$1.50 per debit transaction
(b) Which bank should you choose for your checking account?
MY NOTES
ASK