Question

A financial institution offered you free checking accounts if you keep at least a $1,000 balance in your account. If your balance falls below $1,000, there’s a $7.50 monthly fee and a $0.25 charge per check written.

If your balance is below $1,000 this month and you’ve written five checks, what will the bank charge you for the month?
Question 5 options:

$7.50


$6.25


$8.75


$1.25

Answer 1

$8.75

Explanation: $7.50 monthly fee + (5 checks × $0.25) = $7.50 + $1.25 = $8.75.