Question

bank x|bank y|bank z
no monthly fees if balance stays above $500, otherwise $7 per month|no monthly fees if check card is used less than 6 times per month|$5 monthly fee
no minimum balance|$25 minimum balance|no minimum balance
online banking services|online banking services|online banking services
non - bank x atm fee - $2.00 per transaction|non - bank y atm fee - $1.50 per transaction|non - bank z atm fee - $2.00 per transaction
henry usually has about $300 in his account at any given time during the month. he limits his atm visits to one per week and is interested in banking online options. bank x and bank z have 5 atms within a 5 mile radius of henrys work and his new home. which bank should he choose?

Explanation:

Step1: Calculate monthly fees for Bank X

Henry has $300 in his account which is less than $500, so he will pay a $7 monthly fee. He makes 4 ATM visits per month (1 per week), and non - Bank X ATM fee is $2 per transaction, so ATM fees are $2×4 = $8. Total monthly cost for Bank X is $7 + $8=$15.

Step2: Calculate monthly fees for Bank Y

Henry's check - card usage is 4 times per month which is less than 6 times, so no monthly fee for check - card usage. He has a $25 minimum balance requirement but we assume he meets it as he has $300. Non - Bank Y ATM fee is $1.5 per transaction, so ATM fees are $1.5×4 = $6. Total monthly cost for Bank Y is $6.

Step3: Calculate monthly fees for Bank Z

Bank Z has a $5 monthly fee. Non - Bank Z ATM fee is $2 per transaction, so ATM fees are $2×4 = $8. Total monthly cost for Bank Z is $5 + $8 = $13.

Answer:

Henry should choose Bank Y as it has the lowest monthly cost.