Sure, let's break down the steps together to solve the problem and find out how much Barry can expect to save annually by choosing EECU over E-town bank.
1. Determine Monthly ATM Usage:
Barry uses network ATMs approximately 5 times a month.
2. Establish Fees for Each Bank:
- EECU charges [tex]$2.50 per ATM use.
- E-town charges $[/tex]5.00 per ATM use.
3. Calculate Monthly Costs:
- Monthly cost for EECU:
[tex]\( 5 \text{ uses/month} \times \$2.50/\text{use} = \$12.50/\text{month} \)[/tex]
- Monthly cost for E-town:
[tex]\( 5 \text{ uses/month} \times \$5.00/\text{use} = \$25.00/\text{month} \)[/tex]
4. Annualize these Costs:
- Annual cost for EECU:
[tex]\( \$12.50/\text{month} \times 12 \text{ months/year} = \$150.00/\text{year} \)[/tex]
- Annual cost for E-town:
[tex]\( \$25.00/\text{month} \times 12 \text{ months/year} = \$300.00/\text{year} \)[/tex]
5. Calculate Annual Savings:
By choosing EECU over E-town, the savings are:
[tex]\( \$300.00/\text{year} - \$150.00/\text{year} = \$150.00/\text{year} \)[/tex]
So, Barry will save [tex]$150 annually by selecting EECU over E-town bank.
From the provided answer choices:
a. $[/tex]72[tex]$
b. $[/tex]78[tex]$
c. $[/tex]144[tex]$
d. $[/tex]24[tex]$
None of these options match our calculated savings. Based on our calculations, the correct answer would be $[/tex]150$, which does not appear in the given choices. This may suggest a discrepancy in the provided choices or the problem statement.
