Question

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 check account is the better deal if four wire transfers are made per month?

Answer 1

Answer:

checking account A is the better deal.

Step-by-step explanation:

A charges a monthly service fee = $12.00

Wire transfer fee = $10.50

B charges a monthly service fee = $21.00

Wire transfer fee = $8.50

If the requirement is four wire transfer per month

A charges for 4 wires = 10.50 × 4 = $42.00

and adding monthly service fees = 42.00  + 12.00 = $54.00

B charges for 4 wires = 8.50 × 4 = $34.00

and adding monthly service fees = 34.00 + 21.00 = $55.00

Therefore A charges less than B, so checking account A is the better deal.