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Question 808131: Determine the annual net cost of these checking accounts:
a. Monthly fee $5, check processing fee of 25 cents, average of 19 checks written per month
b. Annual interest of 2.5% paid if balance exceeds $750, $8 a month fee if account falls below minimum balance, average monthly balance $815, account falls below $750 during 4 months.
Answer by JBarnum(2146)   (Show Source):
You can put this solution on YOUR website! Theres a fee of $5 per month and theres $0.25 per check per month. With 19 checks thats 19*0.25=4.75 add that to the $5 fee to make $9.75 per month theres 12 months in a year so 9.75*12=117. So $117 is spent annually/yearly.
Um for b the only cost is from the 4 months that the balance dropped below 750 so 4*8=32. So a $32 fee for this year.
The total cost for both accounts together is $149 for this year.
I hope this helped.
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