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josephcarriveau
josephcarriveau
18.03.2021 • 
Mathematics

A Sharon wants to open a checking account from which to pay bills. She wants online services, and a debit card,
which both banks provide for free. Based upon past experience, she expects to accidentally overdraft the account
1 time per year, due to unexpected charges and miscommunications. She expects no 2nd coples of statements,
and to use network ATMs 4 times per month with either bank. She has $3300 in an emergency savings account at
First State Bank, and thinks that the balance will be enough to cover overdrafts in the future if automatic transfers
are made when needed.
First State Bank
Common Bank
Feature
Description
Feature
Description
Monthly fee
$4
Monthly fee
$0
Nonsufficient funds $36
Non-sufficient funds $24
2nd copy of statement $7
2nd copy ofstatement $4
Network ATM usage $3 each transaction Network ATM usage $2 each transaction
No sufficient funds $4 on each day that a Non-sufficient funds Not offered with this
protection from a First transfer occursto cover protection from a account
State Bank savings an overdraft
Common Banksavings
account
account.
Based on the tables of fees, above, if Sharon chooses First State Bank, will it save her money over choosing
Common Bank?
a. No. Common Bank will save Sharon more money.
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