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Barry wants to open a checking account. He wants online services and a debit card. He is looking at the following table of fees from his employer's credit union, EECU, and a local bank, E-town Bank:

\begin{tabular}{|c|c|c|}
\hline
& EECU & E-town Bank \\
\hline
Monthly fee & \[tex]$0 & \$[/tex]2.50 \\
Nonsufficient funds fee & \[tex]$28 & \$[/tex]35 \\
Network ATM usage & 2 transactions per month free, after that \[tex]$2 each & \$[/tex]2 each \\
Online services and debit cards & Free & Free \\
\hline
\end{tabular}

Based on past experience, Barry expects no overdrafts. He expects no second copies of statements. Barry estimates 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. \$144



Answer :

GinnyAnswer
Let's analyze and compare the fee structures for both the EECU and the E-town Bank over the course of one year based on Barry's estimated usage.

### EECU Fee Analysis
1. Monthly Fee: [tex]\( \$0 \)[/tex]
2. ATM Usage Fee:
- 2 transactions are free per month.
- Barry plans to use network ATMs 5 times per month.
- Therefore, 3 transactions each month will incur a fee.
- Fee for each additional transaction: [tex]\( \$2 \)[/tex]
- Monthly ATM Usage Fee: [tex]\( 3 \times \$2 = \$6 \)[/tex]

So, the monthly cost for EECU is:
[tex]\[ \$0 + \$6 = \$6 \][/tex]

To find the annual cost, we multiply by 12 months:
[tex]\[ 12 \times \$6 = \$72 \][/tex]

### E-town Bank Fee Analysis
1. Monthly Fee: [tex]\( \$2.50 \)[/tex]
2. ATM Usage Fee:
- Barry uses network ATMs 5 times per month.
- Fee for each ATM transaction: [tex]\( \$2 \)[/tex]
- Monthly ATM Usage Fee: [tex]\( 5 \times \$2 = \$10 \)[/tex]

So, the monthly cost for E-town Bank is:
[tex]\[ \$2.50 + \$10 = \$12.50 \][/tex]

To find the annual cost, we multiply by 12 months:
[tex]\[ 12 \times \$12.50 = \$150 \][/tex]

### Annual Savings by Choosing EECU
Now, to find the annual savings by choosing EECU over E-town Bank, we subtract the annual cost of EECU from the annual cost of E-town Bank:
[tex]\[ \$150 - \$72 = \$78 \][/tex]

Therefore, Barry can reasonably expect to save:

b. \$78

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