Based on past experience, Barry expects no overdrafts and no second copies of statements. He estimates that he will use network ATMs about 5 times a month with either bank. Barry decides in the end to choose EECU.

Assuming that both banks provide the necessary services equally well, and based on the tables of fees given above, how much can Barry reasonably expect to save annually by choosing EECU over E-town Bank?

A. \[tex]$72
B. \$[/tex]78
C. \[tex]$144
D. \$[/tex]24

Please select the best answer from the choices provided:
A
B
C
D



Answer :

Sure, let's break down the steps together to solve the problem and find out how much Barry can expect to save annually by choosing EECU over E-town bank.

1. Determine Monthly ATM Usage:
Barry uses network ATMs approximately 5 times a month.

2. Establish Fees for Each Bank:
- EECU charges [tex]$2.50 per ATM use. - E-town charges $[/tex]5.00 per ATM use.

3. Calculate Monthly Costs:
- Monthly cost for EECU:
[tex]\( 5 \text{ uses/month} \times \$2.50/\text{use} = \$12.50/\text{month} \)[/tex]
- Monthly cost for E-town:
[tex]\( 5 \text{ uses/month} \times \$5.00/\text{use} = \$25.00/\text{month} \)[/tex]

4. Annualize these Costs:
- Annual cost for EECU:
[tex]\( \$12.50/\text{month} \times 12 \text{ months/year} = \$150.00/\text{year} \)[/tex]
- Annual cost for E-town:
[tex]\( \$25.00/\text{month} \times 12 \text{ months/year} = \$300.00/\text{year} \)[/tex]

5. Calculate Annual Savings:
By choosing EECU over E-town, the savings are:
[tex]\( \$300.00/\text{year} - \$150.00/\text{year} = \$150.00/\text{year} \)[/tex]

So, Barry will save [tex]$150 annually by selecting EECU over E-town bank. From the provided answer choices: a. $[/tex]72[tex]$ b. $[/tex]78[tex]$ c. $[/tex]144[tex]$ d. $[/tex]24[tex]$ None of these options match our calculated savings. Based on our calculations, the correct answer would be $[/tex]150$, which does not appear in the given choices. This may suggest a discrepancy in the provided choices or the problem statement.