Jack is considering a list of features and fees for Current Bank:

Question

A 2-column table with 3 rows. Column 1 is labeled Feature with entries checking account, savings account, online services. Column 2 is labeled Description with entries free with direct deposit of paycheck, first account free each additional account 4 dollars per month, free with all checking and savings accounts.A 2-column table with 3 rows. Column 1 is labeled Fees with entries non-sufficient funds, second copy of statement, network A T M usage. Column 2 is labeled Amount with entries 32 dollars, 3 dollars, first 2 per month free, 3 dollars for each additional transaction.
Jack plans on using network ATMs about 4 times per month. What would be Jack’s total estimated annual fees for a checking account with direct paycheck deposit, one overdraft per year, and no 2nd copies of statements?
a.
$44
b.
$104
c.
$144
d.
$176

Answer 1

To calculate Jack's total estimated annual fees, we can break down his potential fees based on the information given.

1. Network ATM Usage:

   • Jack plans to use network ATMs about 4 times per month. According to the table, the first 2 transactions each month are free, and any additional transactions cost $3 each.
   • This means Jack will have 2 paid transactions each month (4 total transactions - 2 free transactions).
   • Monthly fees for ATM usage: \(2 \times 3 = 6\) dollars.
   • Annual fees for ATM usage: \(6 \times 12 = 72\) dollars.

2. Non-Sufficient Funds (Overdraft):

   • Jack is planning on one overdraft per year. The fee for non-sufficient funds is $32.
   • Annual fees for overdraft: \(32\) dollars.

3. Second Copy of Statement:

   • Jack does not plan on getting a second copy of his statement, so there will be no fees for this.

Now, we will add the annual fees together:

• Total annual fees = Annual ATM usage fees + Annual overdraft fees = \(72 + 32 = 104\) dollars.

Thus, Jack's total estimated annual fees would be $104.

The correct answer is b. $104.