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 $28 in bank fees. Your friend paid $25 in bank fees.
You paid $28 in bank fees. Your friend paid $25 in bank fees.

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 $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 $40 in bank fees. Your friend paid $25 in bank fees.

Answers

GPT-4o mini
Let's calculate the bank fees for both you and your friend.

**For you (Bank A):**
- Monthly service fee: $12
- Out-of-network ATM withdrawal fee: $2 per withdrawal
- Total ATM withdrawals: 14

Since you made 14 withdrawals:
- Total withdrawal fees = 14 withdrawals * $2 = $28
- Because your withdrawals exceed $12, the $12 monthly service fee is waived.

**Total fees paid to Bank A:**
- Withdrawal fees: $28
- Monthly service fee: $0
- **Total = $28**

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**For your friend (Bank B):**
- Monthly service fee: $20
- Free ATM withdrawals: 10, after which a $5 fee is incurred.

Your friend made 22 withdrawals:
- Free withdrawals: 10
- Paid withdrawals: 22 - 10 = 12
- Since the first 10 withdrawals are free, the fee for 12 additional withdrawals incurs a one-time fee of $5.

**Total fees paid to Bank B:**
- Monthly service fee: $20
- Additional withdrawal fee: $5
- **Total = $20 + $5 = $25**

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Now, comparing the bank fees:
- You paid $28 in bank fees.
- Your friend paid $25 in bank fees.

The true statement is: **You paid $28 in bank fees. Your friend paid $25 in bank fees.**