Question

Vicky's checking account charges a $12.25 monthly service fee and a $0.26

per-check fee. If Vicky writes 16 checks per month, should she switch to a checking account that charges a $16.50 monthly service fee and no per-check fee?

Answer 1

No

Explanation:

0.26*16 + 12.25 = 16.41

16.41 < 16.50

Answer 2

No, Vicky should not switch.

Explanation:

Vicky's checking account charges a monthly service fee = $12.25

Account also charges per-check fee = $0.26

Vicky writes checks per month = 16

His total monthly charges = 12.25+( 16 ×0.26 )

= 12.25 + 4.16

= $16.41

Another account that charges a $16.50 monthly service fee and no per-check fee.

Comparison between account = 16.50 > 16.41

So Vicky should not switch to another account because it charges more than her current account.