Question

question 4 of 10
the checking account fees for banks a, b, c, and d are shown in the table below

	monthly service fee	per - check fee
bank b	none	$0.50
bank c	$12.50	none
bank d	$10.00	$0.10

if a customer writes 26 checks per month, which bank will charge him the least in fees?

a. bank b
b. bank d
c. bank a
d. bank c

Explanation:

Step1: Calculate Bank A total fee

Total fee = Monthly fee + (Per-check fee × Number of checks)
$\$7.50 + (\$0.25 \times 26) = \$7.50 + \$6.50 = \$14.00$

Step2: Calculate Bank B total fee

Total fee = Per-check fee × Number of checks
$\$0.50 \times 26 = \$13.00$

Step3: Calculate Bank C total fee

Total fee = Monthly fee
$\$12.50$

Step4: Calculate Bank D total fee

Total fee = Monthly fee + (Per-check fee × Number of checks)
$\$10.00 + (\$0.10 \times 26) = \$10.00 + \$2.60 = \$12.60$

Step5: Compare all total fees

$\$12.60 < \$12.50 < \$13.00 < \$14.00$

Answer:

B. Bank D