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Natasha has [tex]$\$[/tex] 1000[tex]$ to open a checking account. She can maintain a monthly balance of $[/tex]\[tex]$ 600$[/tex]. She also has a savings account at the same bank. Her employer offers direct deposit, and she plans to use online bill paying. She writes about eight checks per month. She currently uses the ATM machines at several different banks. Natasha sometimes overdraws her account.

Bank Account Terms and Conditions

\begin{tabular}{|c|c|c|c|c|}
\hline
& Account [tex]$A$[/tex] & Account B & Account C & Account D \\
\hline
\begin{tabular}{l}
Minimum \\
Balance
\end{tabular}
& [tex]$\$[/tex] 500[tex]$ & $[/tex]\[tex]$ 250$[/tex] & [tex]$\$[/tex] 100[tex]$ & $[/tex]\[tex]$ 1000$[/tex] \\
\hline
Interest
& [tex]$0.2 \%$[/tex] & [tex]$0 \%$[/tex] & [tex]$0 \%$[/tex] & [tex]$0.2 \%$[/tex] \\
\hline
\begin{tabular}{l}
Overdraw \\
Fees
\end{tabular}
& \begin{tabular}{l}
[tex]$\$[/tex] 0[tex]$ if linked with \\
savings account \\
or $[/tex]\[tex]$ 40$[/tex] per \\
overdraw
\end{tabular}
& [tex]$\$[/tex] 35[tex]$ per overdraw
& \begin{tabular}{l}
$[/tex]\[tex]$ 25$[/tex] per \\
overdraw
\end{tabular}
& \begin{tabular}{l}
[tex]$\$[/tex] 40[tex]$ per \\
overdraft
\end{tabular} \\
\hline
\begin{tabular}{l}
ATM \\
Usage Fees
\end{tabular}
& $[/tex]\[tex]$ 0$[/tex] for all ATMs
& \begin{tabular}{l}
[tex]$\$[/tex] 0[tex]$ for $[/tex]ABC[tex]$ bank \\
ATMs \\
$[/tex]\[tex]$ 3$[/tex] for non-ABC \\
bank ATMs
\end{tabular}
& \begin{tabular}{l}
[tex]$\$[/tex] 3[tex]$ per \\
transaction
\end{tabular}
& \begin{tabular}{l}
$[/tex]\[tex]$ 2.50$[/tex] per \\
transaction
\end{tabular} \\
\hline
Monthly Fee
& \begin{tabular}{l}
[tex]$\$[/tex] 10[tex]$ or \\
$[/tex]\[tex]$ 0$[/tex] with direct deposit
\end{tabular}
& [tex]$\$[/tex] 0[tex]$
& $[/tex]\[tex]$ 0$[/tex]
& \begin{tabular}{l}
[tex]$\$[/tex] 7[tex]$ or $[/tex]\[tex]$ 0$[/tex] with \\
linked savings
\end{tabular} \\
\hline
\end{tabular}



Answer :

GinnyAnswer
Let's break down Natasha's potential costs associated with each account.

### Initial Information:
- Natasha's initial deposit: [tex]$1000 - Monthly balance: $[/tex]600
- Writes 8 checks per month
- Uses ATMs that charge fees
- Potential for overdraft

### Bank Account Analysis:

#### Account A:
- Minimum Balance Requirement: [tex]$500 - Natasha has $[/tex]1000, which meets this requirement.
- Monthly Fee: [tex]$0 (Direct deposit) - ATM Usage Fees: $[/tex]0 (for all ATMs)
- Overdraft Fees: [tex]$0 (linked with savings account) Total Monthly Cost for Account A: $[/tex]0

#### Account B:
- Minimum Balance Requirement: [tex]$250 - Natasha has $[/tex]1000, which meets this requirement.
- Monthly Fee: [tex]$0 - ATM Usage Fees: $[/tex]3 per non-ABC bank ATM transactions
- Natasha uses 8 ATMs at different banks: 8 x [tex]$3 = $[/tex]24
- Overdraft Fees: [tex]$35 per overdraft Total Monthly Cost for Account B: ATM Fees $[/tex]24 + Overdraft Fees [tex]$35 = $[/tex]59

#### Account C:
- Minimum Balance Requirement: [tex]$100 - Natasha has $[/tex]1000, which meets this requirement.
- Monthly Fee: [tex]$0 - ATM Usage Fees: $[/tex]3 per transaction
- Natasha uses 8 ATMs: 8 x [tex]$3 = $[/tex]24
- Overdraft Fees: [tex]$25 per overdraft Total Monthly Cost for Account C: ATM Fees $[/tex]24 + Overdraft Fees [tex]$25 = $[/tex]49

#### Account D:
- Minimum Balance Requirement: [tex]$1000 - Natasha has $[/tex]1000, which meets this requirement.
- Monthly Fee: [tex]$7 (since linked with savings) - ATM Usage Fees: $[/tex]2.50 per transaction
- Natasha uses 8 ATMs: 8 x [tex]$2.5 = $[/tex]20
- Overdraft Fees: [tex]$40 per overdraft Total Monthly Cost for Account D: Monthly Fee $[/tex]7 + ATM Fees [tex]$20 + Overdraft Fees $[/tex]40 = [tex]$67 ### Summary: - Account A: $[/tex]0
- Account B: [tex]$59 - Account C: $[/tex]49
- Account D: $67

From this analysis, Account A appears to be the most cost-effective for Natasha, with zero total monthly costs.

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