Question

A company pays a checking account fee of $25.00 a month plus $.06 for iach check it issues. If it issues 240 checks amonth, how much does it pend for checking account fees that year?

Answer 1

The company spends a total of $472.80 annually on checking account fees, including a fixed monthly fee and a per-check charge.

Step-by-step explanation:

To calculate the total annual checking account fees for a company we need to consider both the monthly fixed fee and the variable cost per check. The company pays a monthly fee of $25.00 and an additional $0.06 per check. If the company issues 240 checks a month, the cost for the checks per month will be 240 checks times $0.06.

Let's calculate this step by step:

• Monthly cost for the checks: 240 checks × $0.06/check = $14.40
• Total monthly fees: $25.00 (fixed fee) + $14.40 (checks) = $39.40
• Annual fees: $39.40/month × 12 months/year = $472.80

Therefore, the company spends $472.80 on checking account fees annually.