Question

What would be the net annual cost of the following checking accounts? (a) Monthly fee, $3.25; processing fee, $0.35 cents per check; checks written, an average of 20 a month. (Do not round intermediate calculations. Input the answer as a positive value. Round your answer to 2 decimal places.)

Answer 1

Total annual cost= $123

Step-by-step explanation:

Giving the following information we need to calculate the annual cost:

Fixed monthly cost= $3.25

Variable cost= $0.35 per check

Q=20 month

Total annual cost= Fixed monthly cost*12+ (Variable cost*20)*12

Total annual cost= (3,25*12)+(0,35*20)*12= $123