Question

The bank offers two kinds of checking accounts. Account A charges a fee of $.20 for each check that is written and has no monthly service charge. Account B charges $.10 for each check and has a monthly service charge of $1.50. How much would you save if you chose Account B and wrote 250 checks in a year?

Answer 1

Account A = $.20 per check

250 x .2 = $50

Account B = $1.50 per month and $.10 per check.

$1.50 x 12 (12 months in a year) = $18

$.10 x 250 checks = $25

$18 + $25 = $43

Account A = 50
Account B = 43

55 - 43 = $12 dollars saved

Answer 2

With Account A, you would be charged $50 within the entire year. With Account B, you would be charged $43 including the monthly fees for the entire year.