Question
Bank A charges a $2 fee each time a customer withdraws money from an out-of-network ATM. They also charge a $12 monthly service fee. If your withdrawals at out-of-network ATMs exceed $12, the monthly service fee is waived.
Bank B does not charge a fee for withdrawing money from an out-of-network ATM, but instead charges a $20 monthly fee. Bank B also limits you to 10 free ATM withdrawals per month. After 10 ATM withdrawals, they automatically charge a one-time fee of $5, no matter how many ATM withdrawals you make.
You and a friend are on vacation. You bank with Bank A. You withdraw money from an out-of-network ATM 14 times. Your friend banks with Bank B. He withdraws money from an ATM 22 times.
Which statement below is true?
(1 point)
Responses
You paid $25 in bank fees. Your friend paid $28 in bank fees.
You paid $25 in bank fees. Your friend paid $28 in bank fees.
You paid $40 in bank fees. Your friend paid $25 in bank fees.
You paid $40 in bank fees. Your friend paid $25 in bank fees.
You paid $28 in bank fees. Your friend paid $30 in bank fees.
You paid $28 in bank fees. Your friend paid $30 in bank fees.
You paid $28 in bank fees. Your friend paid $25 in bank fees.
You paid $28 in bank fees. Your friend paid $25 in bank fees.
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Bank B does not charge a fee for withdrawing money from an out-of-network ATM, but instead charges a $20 monthly fee. Bank B also limits you to 10 free ATM withdrawals per month. After 10 ATM withdrawals, they automatically charge a one-time fee of $5, no matter how many ATM withdrawals you make.
You and a friend are on vacation. You bank with Bank A. You withdraw money from an out-of-network ATM 14 times. Your friend banks with Bank B. He withdraws money from an ATM 22 times.
Which statement below is true?
(1 point)
Responses
You paid $25 in bank fees. Your friend paid $28 in bank fees.
You paid $25 in bank fees. Your friend paid $28 in bank fees.
You paid $40 in bank fees. Your friend paid $25 in bank fees.
You paid $40 in bank fees. Your friend paid $25 in bank fees.
You paid $28 in bank fees. Your friend paid $30 in bank fees.
You paid $28 in bank fees. Your friend paid $30 in bank fees.
You paid $28 in bank fees. Your friend paid $25 in bank fees.
You paid $28 in bank fees. Your friend paid $25 in bank fees.
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Answers
GPT-4o mini
Let's break down the bank fees for both you and your friend.
**For you (Bank A):**
- You withdrew money 14 times from an out-of-network ATM.
- For each withdrawal, there is a $2 fee:
- Total withdrawal fee = 14 withdrawals × $2 = $28.
- The monthly service fee is typically $12, but since your withdrawals exceeded $12, this fee is waived.
So, your total fees with Bank A = $28 (ATM withdrawal fees) + $0 (waived monthly service fee) = **$28**.
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**For your friend (Bank B):**
- Your friend withdrew money 22 times.
- Bank B charges $20 monthly fee regardless of the number of withdrawals.
- They allow 10 withdrawals for free. After that, for the next withdrawals (22 - 10 = 12), there is a one-time fee of $5.
So, your friend's fees are:
- Monthly service fee = $20.
- Charge for the extra 12 withdrawals = $5.
So, total fees with Bank B = $20 (monthly service fee) + $5 (fee for extra withdrawals) = **$25**.
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**Conclusion:**
- You paid $28 in bank fees.
- Your friend paid $25 in bank fees.
The correct statement is:
**You paid $28 in bank fees. Your friend paid $25 in bank fees.**
**For you (Bank A):**
- You withdrew money 14 times from an out-of-network ATM.
- For each withdrawal, there is a $2 fee:
- Total withdrawal fee = 14 withdrawals × $2 = $28.
- The monthly service fee is typically $12, but since your withdrawals exceeded $12, this fee is waived.
So, your total fees with Bank A = $28 (ATM withdrawal fees) + $0 (waived monthly service fee) = **$28**.
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**For your friend (Bank B):**
- Your friend withdrew money 22 times.
- Bank B charges $20 monthly fee regardless of the number of withdrawals.
- They allow 10 withdrawals for free. After that, for the next withdrawals (22 - 10 = 12), there is a one-time fee of $5.
So, your friend's fees are:
- Monthly service fee = $20.
- Charge for the extra 12 withdrawals = $5.
So, total fees with Bank B = $20 (monthly service fee) + $5 (fee for extra withdrawals) = **$25**.
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**Conclusion:**
- You paid $28 in bank fees.
- Your friend paid $25 in bank fees.
The correct statement is:
**You paid $28 in bank fees. Your friend paid $25 in bank fees.**