whs mathematics of personal finance t1 understanding banking comparing banking options consider these two…

whs mathematics of personal finance t1 understanding banking comparing banking options consider these two banks. bank a: no monthly fee, 1 free atm withdrawal per month, and $2.00 for each withdrawal after that. bank b: monthly maintenance fee of $3.00, 3 free atm withdrawals per month, and $1.25 for each withdrawal after that. if alter expects to make 4 atm withdrawals per month, which bank would be more cost - effective in terms of monthly fees and charges? will be cheaper by per month.

whs mathematics of personal finance t1 understanding banking comparing banking options consider these two banks. bank a: no monthly fee, 1 free atm withdrawal per month, and $2.00 for each withdrawal after that. bank b: monthly maintenance fee of $3.00, 3 free atm withdrawals per month, and $1.25 for each withdrawal after that. if alter expects to make 4 atm withdrawals per month, which bank would be more cost - effective in terms of monthly fees and charges? will be cheaper by per month.

Answer

Explanation:

Step1: Calculate Bank A's monthly cost

Bank A has 1 free ATM - withdrawal. For 4 withdrawals, the number of charged withdrawals is (4 - 1=3). Each charged withdrawal costs $2.00. So the cost for Bank A is (3\times2 = 6) dollars.

Step2: Calculate Bank B's monthly cost

Bank B has a $3.00 monthly maintenance fee and 3 free ATM - withdrawals. For 4 withdrawals, the number of charged withdrawals is (4 - 3 = 1). Each charged withdrawal costs $1.25. So the total cost for Bank B is (3+1\times1.25=3 + 1.25=4.25) dollars.

Step3: Compare the costs

We compare the costs of Bank A ($6) and Bank B ($4.25). The difference is (6 - 4.25 = 1.75) dollars. Bank B is cheaper.

Answer:

Bank B will be cheaper by $1.75 per month.