Question

Russ' checking account charges an $11.25 monthly service fee and a $0.22 per-check fee. If Russ writes 14 checks per month, should he switch to a checking account that charges a $14.50 monthly service fee and no per-check fee?

Answer 1

The total amount that present account charges is the sum of the monthly service fee and the total per check fee.

The monthly service fee is $11.25

The per check fee is $0.22. Therefore, the total check fee for 14 checks will be $14\times 0.22=3.08$ dollars.

Therefore the total amount that the present account charges is $11.25+3.08=14.33$ dollars.

As can be clearly seen, this is still less than the second option of a checking account that charges a $14.50 monthly service fee and no per-check fee. Therefore, Russ should not he switch to a checking account that charges a $14.50 monthly service fee and no per-check fee.

Answer 2

Yes,because that is $3.03 higher than what he is receving right now so that will be an accelent option:)