Let's break down the question step-by-step to determine Jack's total estimated annual fees for a checking account with direct paycheck deposit, one overdraft per year, and no second copies of statements:
1. ATM Fees:
- Jack plans on using network ATMs about 4 times per month.
- According to the Current Bank fees, the first 2 ATM transactions per month are free.
- For each additional transaction beyond the first 2, Jack is charged [tex]$3 per transaction.
- Since Jack uses the ATM 4 times per month, he exceeds the free transactions by 2 (4 - 2).
- Therefore, he will be charged for 2 additional transactions.
Monthly ATM fees = 2 additional transactions * $[/tex]3 per additional transaction
[tex]\[
= 2 * 3 = \$6
\][/tex]
Annually, since there are 12 months in a year:
[tex]\[
Annual ATM fees = 6 * 12 = \$72
\][/tex]
2. Non-sufficient Funds Fee:
- Jack has one overdraft per year.
- The fee for non-sufficient funds (NSF) is [tex]$32.
Annual NSF fee = $[/tex]32
3. Total Annual Fees:
- Now, let's add the annual ATM fees and the annual NSF fee.
[tex]\[
Total annual fees = Annual ATM fees + Annual NSF fee
\][/tex]
[tex]\[
= 72 + 32 = \$104
\][/tex]
Therefore, Jack's total estimated annual fees are:
[tex]\[
\boxed{104}
\][/tex]
The correct answer is:
[tex]\[
\text{b. } \$104
\][/tex]
