Maggie Wants to Open a Checking Account That Will Be

question 52

Essay

Maggie wants to open a checking account that will be the least expensive,given her normal financial transactions.She typically writes 15 checks a month and uses an ATM 35 times a month.Her monthly minimum checking balances falls to about $350 on an average.Which of the following accounts would be least expensive for Maggie? (Show all your work.)
Account A:
No monthly fee is charged if a minimum balance of at least $300 is maintained.
A $5.00 fee is charged in any month the minimum balance falls below $300.
An ATM fee of $0.10 per transaction is charged on all transactions.
Account B:
No monthly fee is charged if a minimum balance of at least $500 is maintained.
A $3.00 fee plus $0.10/check is charged in any month the minimum balance falls below $500.
There is no ATM fee on transactions.

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Definitions:

Hispanic Persons

Individuals originating from Spanish-speaking countries, especially those in Latin America, and often pertaining to a demographic group in the United States.

Lives in Poverty

The state of individuals or groups who lack sufficient financial or material resources to meet their basic living needs.

Incidence of Poverty

The proportion or rate of individuals or households whose income falls below the poverty line, indicating their inability to afford basic needs.

White (Non-Hispanic) People

A demographic group identified by the U.S. Census Bureau referring to individuals who self-identify as white and not of Hispanic or Latino origin.