Let's analyze and compare the fee structures for both the EECU and the E-town Bank over the course of one year based on Barry's estimated usage.
### EECU Fee Analysis
1. Monthly Fee: [tex]\( \$0 \)[/tex]
2. ATM Usage Fee:
- 2 transactions are free per month.
- Barry plans to use network ATMs 5 times per month.
- Therefore, 3 transactions each month will incur a fee.
- Fee for each additional transaction: [tex]\( \$2 \)[/tex]
- Monthly ATM Usage Fee: [tex]\( 3 \times \$2 = \$6 \)[/tex]
So, the monthly cost for EECU is:
[tex]\[ \$0 + \$6 = \$6 \][/tex]
To find the annual cost, we multiply by 12 months:
[tex]\[ 12 \times \$6 = \$72 \][/tex]
### E-town Bank Fee Analysis
1. Monthly Fee: [tex]\( \$2.50 \)[/tex]
2. ATM Usage Fee:
- Barry uses network ATMs 5 times per month.
- Fee for each ATM transaction: [tex]\( \$2 \)[/tex]
- Monthly ATM Usage Fee: [tex]\( 5 \times \$2 = \$10 \)[/tex]
So, the monthly cost for E-town Bank is:
[tex]\[ \$2.50 + \$10 = \$12.50 \][/tex]
To find the annual cost, we multiply by 12 months:
[tex]\[ 12 \times \$12.50 = \$150 \][/tex]
### Annual Savings by Choosing EECU
Now, to find the annual savings by choosing EECU over E-town Bank, we subtract the annual cost of EECU from the annual cost of E-town Bank:
[tex]\[ \$150 - \$72 = \$78 \][/tex]
Therefore, Barry can reasonably expect to save:
b. \$78
