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)
You paid $28 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 525 in bank fees. Your friend paid $28 in bank fees
You paid $40 in bank fees. Your friend paid $25 in bank fees
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)
You paid $28 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 525 in bank fees. Your friend paid $28 in bank fees
You paid $40 in bank fees. Your friend paid $25 in bank fees
Answers
GPT-4o mini
Let's break down the fees for both you and your friend:
**For you with Bank A:**
- Monthly service fee: $12
- Withdrawals made: 14
- Out-of-network ATM fee per withdrawal: $2
- Total withdrawal fees: 14 withdrawals * $2 = $28
Since your total withdrawal fees ($28) exceed the $12 monthly service fee, the monthly service fee is waived.
So, your total bank fees with Bank A = $28 (withdrawal fees, service fee waived) = **$28**.
**For your friend with Bank B:**
- Monthly service fee: $20
- Withdrawals made: 22
- First 10 withdrawals are free.
- For the next 12 withdrawals (from 11 to 22), they incur a one-time fee of $5.
So, your friend's fees break down as follows:
- Monthly service fee: $20
- Cost for extra ATM withdrawals: $5 (for the 12 withdrawals beyond the first 10)
Total bank fees for your friend with Bank B = $20 (service fee) + $5 (additional withdrawal fee) = **$25**.
Now, comparing the two totals:
- You paid $28 in bank fees.
- Your friend paid $25 in bank fees.
Thus, the correct statement is:
**You paid $28 in bank fees. Your friend paid $25 in bank fees.**
**For you with Bank A:**
- Monthly service fee: $12
- Withdrawals made: 14
- Out-of-network ATM fee per withdrawal: $2
- Total withdrawal fees: 14 withdrawals * $2 = $28
Since your total withdrawal fees ($28) exceed the $12 monthly service fee, the monthly service fee is waived.
So, your total bank fees with Bank A = $28 (withdrawal fees, service fee waived) = **$28**.
**For your friend with Bank B:**
- Monthly service fee: $20
- Withdrawals made: 22
- First 10 withdrawals are free.
- For the next 12 withdrawals (from 11 to 22), they incur a one-time fee of $5.
So, your friend's fees break down as follows:
- Monthly service fee: $20
- Cost for extra ATM withdrawals: $5 (for the 12 withdrawals beyond the first 10)
Total bank fees for your friend with Bank B = $20 (service fee) + $5 (additional withdrawal fee) = **$25**.
Now, comparing the two totals:
- You paid $28 in bank fees.
- Your friend paid $25 in bank fees.
Thus, the correct statement is:
**You paid $28 in bank fees. Your friend paid $25 in bank fees.**