Question
Determine the annual net cost of this checking account?
Annual interest of 2.5% paid if balance exceeds $750, $8 monthly fee if account falls below minimum balance, average balance $815, account falls below $750 during 4 months.
Is my answer correct?
815 * .025 * 4/12=$6.69 yearly interest lost
$8.00 * 4 = $32.00 fee for account falling below minimum balance.
$6.69 + $32.00 = $38.69 yearly net cost
Annual interest of 2.5% paid if balance exceeds $750, $8 monthly fee if account falls below minimum balance, average balance $815, account falls below $750 during 4 months.
Is my answer correct?
815 * .025 * 4/12=$6.69 yearly interest lost
$8.00 * 4 = $32.00 fee for account falling below minimum balance.
$6.69 + $32.00 = $38.69 yearly net cost
Answers
Erica
Revised answer:
815*.025*8/12= $13.79
$8.00*4= $32.00
32.00 - 13.79= $18.42 net cost
815*.025*8/12= $13.79
$8.00*4= $32.00
32.00 - 13.79= $18.42 net cost