You are looking for a bank in which to open a checking account for your new part-time business. You estimate that in the first year, you will be writing 30 checks per month and will make three debit transactions per month. Your average daily balance is estimated to be $900 for the first six months and $2,400 for the next six months. Use the following information to solve the problem. Bank Monthly Fees and Conditions Bank 1 $16.00 with $1,000 min. daily balance -or- $25.00 under $1,000 min. daily balance Bank 2 $4.50 plus $0.40 per check over 10 checks monthly $1.00 per debit transaction Bank 3 $5 plus $0.25 per check $2.00 per debit transaction Bank 4 $8 plus $0.15 per check $1.50 per debit transaction (a) Calculate the cost (in $) of doing business with each bank for a year. Bank 1 Bank 2 Bank 3 Bank 4 (b) Which bank should you choose for your checking account? Bank 1 Bank 2 Bank 3 Bank 4
You are looking for a bank in which to open a checking account for your new part-time business. You estimate that in the first year, you will be writing 30 checks per month and will make three debit transactions per month. Your average daily balance is estimated to be $900 for the first six months and $2,400 for the next six months. Use the following information to solve the problem. Bank Monthly Fees and Conditions Bank 1 $16.00 with $1,000 min. daily balance -or- $25.00 under $1,000 min. daily balance Bank 2 $4.50 plus $0.40 per check over 10 checks monthly $1.00 per debit transaction Bank 3 $5 plus $0.25 per check $2.00 per debit transaction Bank 4 $8 plus $0.15 per check $1.50 per debit transaction (a) Calculate the cost (in $) of doing business with each bank for a year. Bank 1 Bank 2 Bank 3 Bank 4 (b) Which bank should you choose for your checking account? Bank 1 Bank 2 Bank 3 Bank 4
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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You are looking for a bank in which to open a checking account for your new part-time business. You estimate that in the first year, you will be writing 30 checks per month and will make three debit transactions per month. Your average daily balance is estimated to be $900 for the first six months and $2,400 for the next six months.
Use the following information to solve the problem.
| Bank | Monthly Fees and Conditions |
|---|---|
| Bank 1 | $16.00 with $1,000 min. daily balance -or- $25.00 under $1,000 min. daily balance |
| Bank 2 | $4.50 plus $0.40 per check over 10 checks monthly $1.00 per debit transaction |
| Bank 3 | $5 plus $0.25 per check $2.00 per debit transaction |
| Bank 4 | $8 plus $0.15 per check $1.50 per debit transaction |
(a)
Calculate the cost (in $) of doing business with each bank for a year.
Bank 1
Bank 2
Bank 3
Bank 4
(b)
Which bank should you choose for your checking account?
Bank 1
Bank 2
Bank 3
Bank 4
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