Question

community trust bank
monthly maintenance fee: $5 (waived with a minimum daily balance of $300 or with a student id)
atm fee: $1.50 for out - of - network atms; no fee for in - network atms
overdraft fee: $25 per occurrence
minimum balance fee: $0
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
global exchange bank
monthly maintenance fee: $15 waived with a minimum daily balance of $1,000
$2,000 with monthly direct deposits of $1,000
atm fee: $0 for in - network and international atms; $3 out - of - network
domestic atms
overdraft fee: $25 per occurrence
minimum balance fee: $10 if the balance falls below $500
wire transfer fee: free for domestic, $20 for international
savings account interest rate: 0.4% annual percentage yield (apy)
a student opens an account with community trust bank and maintains a balance of $300. he uses an out - of - network atm twice during the month, and uses an in - network atm three times during the same month. what are his total fees for the month?
$8
$3
$9
$5

Explanation:

Step1: Determine monthly maintenance fee

The student has a balance of $300. Since it's a student - account and with a minimum daily balance of $300, the monthly maintenance fee of $5 is waived.

Step2: Calculate in - network ATM fees

In - network ATM usage has no fee. The student uses in - network ATMs 3 times, so the fee from in - network ATMs is $0.

Step3: Calculate out - of - network ATM fees

Out - of - network ATM fee is $1.50 per occurrence. The student uses out - of - network ATMs 2 times. So the out - of - network ATM fee is $1.50×2 = $3.

Answer:

$3