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Checking account A charges a monthly service fee of $12 and a wire transfer

fee of $10.50, while checking account B charges a monthly service fee of $21
and a wire transfer fee of $8.50. Which checking account is the better deal if
4 wire transfers are made per month?
A. Checking account A is the better deal, because its total monthly
fees amount to $54, while those for checking account B amount to
$55.
B. Checking account A is the better deal, because its total monthly
fees amount to $55, while those for checking account B amount to
$54.
C. Checking account B is the better deal, because its total monthly
fees amount to $54, while those for checking account A amount to
$55.
D. Checking account B is the better deal, because its total monthly
fees amount to $55, while those for checking account A amount to
$54.

User Donniewiko
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1 Answer

4 votes

Answer:

D. Checking account B is the better deal, because its total monthly fees amount to $55, while those for checking account A amount to $54.

To determine the better deal, you must calculate the total monthly fees for each checking account. For checking account A, the monthly service fee is $12 and the wire transfer fee is $10.50, so the total monthly fees amount to $12 + (4 * $10.50) = $55. For checking account B, the monthly service fee is $21 and the wire transfer fee is $8.50, so the total monthly fees amount to $21 + (4 * $8.50) = $55. Since checking account B has lower total monthly fees, it is the better deal.

Explanation:

User J Tasker
by
3.5k points