Maggie wants to open a checking account that will be the least expensive, given her normal financial transactions. She typically writes 15 checks a month and uses an ATM 35 times a month. Her monthly minimum checking balance falls to about $350 on an average. Which of the following accounts would be least expensive for Maggie? (Show all your work.)
Account A:
No monthly fee is charged if a minimum balance of at least $300 is maintained.
A $5.00 fee is charged in any month the minimum balance falls below $300.
An ATM fee of $0.10 per transaction is charged on all transactions.
Account B:
No monthly fee is charged if a minimum balance of at least $500 is maintained.
A $3.00 fee plus $0.10\check is charged in any month the minimum balance falls below $500.
There is no ATM fee on transactions.
See 4-4: Maintaining a Checking Account.

Question

Maggie wants to open a checking account that will be the least expensive, given her normal financial transactions. She typically writes 15 checks a month and uses an ATM 35 times a month. Her monthly minimum checking balance falls to about $350 on an average. Which of the following accounts would be least expensive for Maggie? (Show all your work.)
 Account A: 
 No monthly fee is charged if a minimum balance of at least $300 is maintained. 
 A $5.00 fee is charged in any month the minimum balance falls below $300. 
 An ATM fee of $0.10 per transaction is charged on all transactions. 
 Account B: 
 No monthly fee is charged if a minimum balance of at least $500 is maintained. 
 A $3.00 fee plus $0.10\check is charged in any month the minimum balance falls below $500. 
 There is no ATM fee on transactions. 
 See 4-4: Maintaining a Checking Account.

Quizplus · Accepted Answer

The Answer of Maggie wants to open a checking account that will be the least expensive, given her normal financial transactions. She typically writes 15 checks a month and uses an ATM 35 times a month. Her monthly minimum checking balance falls to about $350 on an average. Which of the following accounts would be least expensive for Maggie? (Show all your work.)
 Account A: 
 No monthly fee is charged if a minimum balance of at least $300 is maintained. 
 A $5.00 fee is charged in any month the minimum balance falls below $300. 
 An ATM fee of $0.10 per transaction is charged on all transactions. 
 Account B: 
 No monthly fee is charged if a minimum balance of at least $500 is maintained. 
 A $3.00 fee plus $0.10\check is charged in any month the minimum balance falls below $500. 
 There is no ATM fee on transactions. 
 See 4-4: Maintaining a Checking Account.

Maggie Wants to Open a Checking Account That Will Be