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.
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.
Answers
GPT-4o mini
Let's calculate the total fees for both you and your friend based on the given conditions.
### You (Bank A):
1. **Monthly Service Fee**: Since you withdrew money from out-of-network ATMs 14 times, which exceeds $12 in total withdrawal fees, the $12 monthly service fee is waived.
2. **ATM Withdrawal Fees**: You withdrew 14 times, and Bank A charges $2 per withdrawal.
\[
\text{Total Withdrawal Fee} = 14 \, \text{withdrawals} \times 2 \, \text{dollars/withdrawal} = 28 \, \text{dollars}
\]
3. **Total Fees**: Since the monthly service fee is waived, the total fees for you is just the total withdrawal fee.
\[
\text{Total Fees for You} = 0 \, \text{(monthly fee)} + 28 \, \text{(withdrawal fees)} = 28 \, \text{dollars}
\]
### Your Friend (Bank B):
1. **Monthly Service Fee**: Bank B charges a $20 monthly fee. There are no circumstances provided that would waive this fee.
\[
\text{Monthly Service Fee} = 20 \, \text{dollars}
\]
2. **ATM Withdrawal Fees**: Your friend withdrew 22 times. The first 10 withdrawals are free; after that, there is a one-time fee of $5 for potentially unlimited additional withdrawals.
\[
\text{Free Withdrawals} = 10 \, \text{withdrawals}
\]
\[
\text{Additional Withdrawals} = 22 - 10 = 12 \, \text{withdrawals (not free)}
\]
Because your friend has already reached the limit of 10 free withdrawals, they incur a one-time fee of $5 for all withdrawals beyond that.
3. **Total Fees**: The total fees for your friend comprise the monthly service fee and the $5 one-time fee.
\[
\text{Total Fees for Friend} = 20 \, \text{(monthly fee)} + 5 \, \text{(extra withdrawal fee)} = 25 \, \text{dollars}
\]
### Summary:
- **Total Fees for You (Bank A)**: $28
- **Total Fees for Your Friend (Bank B)**: $25
In conclusion:
- You owe $28 in fees to Bank A.
- Your friend owes $25 in fees to Bank B.
### You (Bank A):
1. **Monthly Service Fee**: Since you withdrew money from out-of-network ATMs 14 times, which exceeds $12 in total withdrawal fees, the $12 monthly service fee is waived.
2. **ATM Withdrawal Fees**: You withdrew 14 times, and Bank A charges $2 per withdrawal.
\[
\text{Total Withdrawal Fee} = 14 \, \text{withdrawals} \times 2 \, \text{dollars/withdrawal} = 28 \, \text{dollars}
\]
3. **Total Fees**: Since the monthly service fee is waived, the total fees for you is just the total withdrawal fee.
\[
\text{Total Fees for You} = 0 \, \text{(monthly fee)} + 28 \, \text{(withdrawal fees)} = 28 \, \text{dollars}
\]
### Your Friend (Bank B):
1. **Monthly Service Fee**: Bank B charges a $20 monthly fee. There are no circumstances provided that would waive this fee.
\[
\text{Monthly Service Fee} = 20 \, \text{dollars}
\]
2. **ATM Withdrawal Fees**: Your friend withdrew 22 times. The first 10 withdrawals are free; after that, there is a one-time fee of $5 for potentially unlimited additional withdrawals.
\[
\text{Free Withdrawals} = 10 \, \text{withdrawals}
\]
\[
\text{Additional Withdrawals} = 22 - 10 = 12 \, \text{withdrawals (not free)}
\]
Because your friend has already reached the limit of 10 free withdrawals, they incur a one-time fee of $5 for all withdrawals beyond that.
3. **Total Fees**: The total fees for your friend comprise the monthly service fee and the $5 one-time fee.
\[
\text{Total Fees for Friend} = 20 \, \text{(monthly fee)} + 5 \, \text{(extra withdrawal fee)} = 25 \, \text{dollars}
\]
### Summary:
- **Total Fees for You (Bank A)**: $28
- **Total Fees for Your Friend (Bank B)**: $25
In conclusion:
- You owe $28 in fees to Bank A.
- Your friend owes $25 in fees to Bank B.