leonard has a checking account with a monthly maintenance fee of $15, which is waived if his balance remains…
leonard has a checking account with a monthly maintenance fee of $15, which is waived if his balance remains over $100 every day during the month. his bank charges a $3 overdraft fee and $3 for each use of an out - of - network atm. his bank allows free transfers between checking and savings accounts. last month, leonard used an out - of - network atm three times. toward the end of the month he made a $150 car payment. in order to not have his balance go below $100 from this payment, he transferred $250 from his savings to his checking account first. how much did he pay in fees for the whole month?
Answer
Explanation:
Step1: Check maintenance - fee waiver condition
The monthly maintenance fee of $15 is waived if the balance remains over $100 every day. Leonard made a $450 payment and transferred $250 from savings to checking. His net - increase in checking account is $450 - 250= $200. Since we don't know the initial balance and there is no information indicating the balance went below $100, the maintenance fee is waived.
Step2: Calculate out - of - network ATM fees
Leonard used an out - of - network ATM three times. The bank charges $3 for each use of an out - of - network ATM. So the out - of - network ATM fees are $3×3 = $9.
Step3: Calculate total fees
The total fees are the sum of all applicable fees. Since the maintenance fee is waived, the total fee is just the out - of - network ATM fees, which is $9.
Answer:
$9