Chapter 4, Problem 5FPE

Calculating the net costs of checking accounts. Determine the annual net cost of these checking accounts:

1. a. Monthly fee $4, check-processing fee of 20 cents, average of 23 checks written per month
2. b. Annual interest of 1.5 percent paid if balance exceeds $750, $8 monthly fee if account falls below minimum balance, average monthly balance $815, account falls below $750 during four months