Let's examine each bank account step-by-step to determine which one will result in the lowest monthly fees for Karen based on her situation.
### Given Information:
- Karen has [tex]$800 to open the account.
- She writes about 5 checks per month.
- Her employer has direct deposit.
### Bank Account Conditions:
Account A:
- Minimum Balance: $[/tex]500
- Monthly Fee: [tex]$5
- Check Fee: $[/tex]0 (unlimited free checks)
- ATM Fee: [tex]$0
Account B:
- Minimum Balance: $[/tex]250
- Monthly Fee: [tex]$10
- Check Fee: $[/tex]0 (free up to 15 checks per month)
- ATM Fee: [tex]$0 (for ABC bank ATMs)
Account C:
- Minimum Balance: $[/tex]50
- Monthly Fee: [tex]$0 (since she has direct deposit)
- Check Fee: $[/tex]0.08 per check
- ATM Fee: [tex]$2 per transaction
Account D:
- Minimum Balance: $[/tex]100
- Monthly Fee: [tex]$2
- Check Fee: $[/tex]0 for first 10 checks, [tex]$0.12 per check thereafter
Since Karen only writes 5 checks per month and has direct deposit, we can now calculate the total monthly cost for each account.
### Calculations:
Account A:
- Monthly Fee: $[/tex]5
- Check Fee: [tex]$0 (first 5 checks are free)
- Total Monthly Cost: $[/tex]5
Account B:
- Monthly Fee: [tex]$10
- Check Fee: $[/tex]0 (first 15 checks are free)
- Total Monthly Cost: [tex]$10
Account C:
- Monthly Fee: $[/tex]0 (due to direct deposit)
- Check Fee: 5 checks * [tex]$0.08 = $[/tex]0.40
- Total Monthly Cost: [tex]$0.40
Account D:
- Monthly Fee: $[/tex]2
- Check Fee: [tex]$0 (first 10 checks are free)
- Total Monthly Cost: $[/tex]2
### Summary of Costs:
- Account A: [tex]$5
- Account B: $[/tex]10
- Account C: [tex]$0.40
- Account D: $[/tex]2
### Conclusion:
The account with the lowest monthly fee for Karen, who writes about 5 checks per month and has direct deposit, is Account C with a total monthly cost of $0.40. Therefore, Account C is the best checking account for Karen.
