Question

understanding banking
community trust bank
monthly maintenance fee: $5 (waived with a minimum daily balance of $500 or with a student id)
atm fee: $1.50 for out - of - network atms; no fee for in - network atms
savings account interest rate: 0.3% annual percentage yield (apy)
special feature: offers financial education workshops for account holders
global exchange bank
monthly maintenance fee: $15 waived with a minimum daily balance of $1,000
atm fee: $0 for in - network and international atms; $3 out - of - network
domestic atms
overdraft fee: $25 per occurrence
wire transfer fee: $15 for domestic, $25 for international
savings account interest rate: 0.3% annual percentage yield (apy)
special feature: offers financial education workshops for account holders
a student opens an account with community trust bank and maintains a balance of $300. he uses an out - of - network atm twice and an in - network atm three times during the same month. what are his total fees for the month?
$5
$3
$9
$8

Explanation:

Step1: Determine monthly maintenance fee

Since the student has a balance of $300 which is less than the $500 required to waive the monthly maintenance fee, and with a student - ID the fee is waived. So the monthly maintenance fee is $0.

Step2: Calculate in - network ATM fees

In - network ATM fee is $0. The student uses in - network ATMs 3 times, so the in - network ATM fee is $0\times3 = 0$.

Step3: Calculate out - of - network ATM fees

Out - of - network ATM fee is $1.50 for out - of - network ATMs. The student uses out - of - network ATMs 2 times. So the out - of - network ATM fee is $1.50\times2=3$.

Step4: Calculate total fees

Total fees = Monthly maintenance fee+In - network ATM fees+Out - of - network ATM fees = $0 + 0+3=3$.

Answer:

$3