Brad Kellogg Maintains a Monthly Balance in His Checking Account

question 28

Essay

Brad Kellogg maintains a monthly balance in his checking account of approximately $150,writes about 25 checks a month,and makes three deposits each month.How would Brad decide which one of the following checking accounts he should use?
Bank A: regular checking account with a monthly fee of $4.50 for an unlimited number of checks,no monthly balance requirement,and no interest earnings.
Bank B: interest-bearing checking account paying 4 percent interest on balances over $300 and a monthly service charge of $6 if the balance falls below $300.
Bank C: special checking account that charges 35 cents a check and 20 cents for each deposit,no interest earnings.
Bank D: minimum-balance account that requires a $200 minimum balance to avoid the $10 monthly fee,two percent interest paid if the balance remains above $400.

---

Definitions:

Accumulated Depletion

The total amount charged against the natural resources (like timber, minerals, and oil) a company has extracted, reflecting the decrease in value of those resources.

Balance Sheet

A financial statement that displays the assets, liabilities, and owner's equity of an entity at a specific point in time, outlining its financial position.

Cost Allocation

The process of identifying, aggregating, and assigning costs to cost objects, such as products or departments.

Natural Resources

Assets provided by nature without human intervention, such as minerals, forests, water, and land, that can be used for economic gain.