Becca has [tex]$\$[/tex] 500[tex]$ to open a checking account. She wants an account with the lowest fees. She writes about 12 checks per month, her employer has direct deposit, and she plans to only use her bank's ATM four times a month.

Bank Account Terms and Conditions
\begin{tabular}{|c|c|c|c|c|c|}
\cline { 2 - 6 } \multicolumn{1}{c|}{} & \begin{tabular}{c}
Minimum \\
Balance
\end{tabular} & \begin{tabular}{c}
Online \\
banking
\end{tabular} & Check Limits & ATM Fees & Monthly Fee \\
\hline A & $[/tex]\[tex]$ 500$[/tex] & yes & unlimited & \begin{tabular}{c}
[tex]$\$[/tex] 0[tex]$ for all \\
ATMs
\end{tabular} & $[/tex]\[tex]$ 12$[/tex] \\
\hline B & [tex]$\$[/tex] 250[tex]$ & yes & 15 per month & \begin{tabular}{c}
$[/tex]\[tex]$ 0$[/tex] for [tex]$A B C$[/tex] \\
bank ATMs
\end{tabular} & [tex]$\$[/tex] 10[tex]$ \\
\hline C & $[/tex]\[tex]$ 50$[/tex] & yes & \begin{tabular}{c}
[tex]$\$[/tex] 0.08[tex]$ \\
each
\end{tabular} & \begin{tabular}{c}
$[/tex]\[tex]$ 2.50$[/tex] per \\
transaction
\end{tabular} & \begin{tabular}{c}
[tex]$\$[/tex] 0[tex]$ with direct \\
deposit
\end{tabular} \\
\hline D & $[/tex]\[tex]$ 100$[/tex] & no & \begin{tabular}{c}
over [tex]$10, \$[/tex] 0.12[tex]$ \\
each
\end{tabular} & \begin{tabular}{c}
$[/tex]\[tex]$ 3$[/tex] per \\
transaction
\end{tabular} & [tex]$\$[/tex] 2$ \\
\hline
\end{tabular}

Which checking account would be best for Becca?



Answer :

To determine which checking account would be best for Becca, we must calculate the total monthly fees for each bank based on her usage of 12 checks and 4 ATM transactions per month.

Here's a detailed step-by-step solution for each bank account:

### Bank A:
- Monthly fee: \[tex]$12 - No fees for ATM usage - No additional check fees Total monthly cost for Bank A: \[ \text{Total Cost}_A = \$[/tex]12 \]

### Bank B:
- Monthly fee: \[tex]$10 - No fees for checks as long as it's ≤ 15 checks per month - No fees for using the bank's ATM Total monthly cost for Bank B: \[ \text{Total Cost}_B = \$[/tex]10 \]

### Bank C:
- Fee per check: \[tex]$0.08 - Number of checks: 12 - ATM fee: \$[/tex]2.50 per transaction
- Number of ATM transactions: 4
- No monthly fee with direct deposit

Total monthly cost for checks:
[tex]\[ 12 \times 0.08 = \$0.96 \][/tex]

Total monthly cost for ATMs:
[tex]\[ 4 \times 2.50 = \$10.00 \][/tex]

Total monthly cost for Bank C:
[tex]\[ \text{Total Cost}_C = \$0.96 (\text{checks}) + \$10.00 (\text{ATMs}) = \$10.96 \][/tex]

### Bank D:
- First 10 checks are free. For 12 checks, 2 checks will be charged.
- Fee per additional check: \[tex]$0.12 - Number of extra checks: 2 - ATM fee: \$[/tex]3.00 per transaction
- Number of ATM transactions: 4
- Monthly fee: \[tex]$2 Total cost for extra checks: \[ 2 \times 0.12 = \$[/tex]0.24 \]

Total monthly cost for ATMs:
[tex]\[ 4 \times 3.00 = \$12.00 \][/tex]

Total monthly cost for Bank D:
[tex]\[ \text{Total Cost}_D = \$2 (\text{monthly fee}) + \$0.24 (\text{checks}) + \$12.00 (\text{ATMs}) = \$14.24 \][/tex]

### Summary of Total Monthly Costs:
- Bank A: \[tex]$12 - Bank B: \$[/tex]10
- Bank C: \[tex]$10.96 - Bank D: \$[/tex]14.24

### Conclusion:
Becca will have the lowest total monthly fees by choosing Bank B, which costs \$10 per month. Therefore, Bank B is the best checking account for Becca.