Lorenzo is considering two banks for his chequing account. Thrift Bank requires a minimum deposit of $100, charges a monthly fee of eight dollars, plus $0.50 per cheque. Merchants Bank also requires a minimum deposit of $100, charges no monthly fee, but charges one dollar per cheque. How many cheques would Lorenzo need to write each month to make Thrift Bank less expensive to use than Merchants Bank?

Question

Quizplus · Accepted Answer

To find when Thrift Bank is cheaper, set up the inequality: 8 + 0.50x < 1x, where x is the number of cheques. Solving gives x > 16. Thus, Lorenzo needs to write more than 16 cheques for Thrift Bank to be cheaper.

Lorenzo Is Considering Two Banks for His Chequing Account