Question

Victor read the fine print for a checking account he was thinking about using. The fine print said, "A minimum balance of $500 is required. If your balance falls below this level, you will be assessed a monthly fee of $10." Since Victor was planning to keep only a $50 balance in his account, how much could he be charged each year?

Answer 1

$ 120 per year.

Explanation:

Minimum balance for the checking account = $ 500

Monthly charge below minimum balance = $10/ month

Victor's planned account balance = $ 50

Since Victor's planned balance is below the minimum, he would be charged a total of :

= 12 month x $10/ month

= $ 120 per year.

This implies that Victor will need to pay the bank a total of $120 every year for using the checking at a balance below the minimum of $500