Reference no: EM132828190

Question - You want to open a checking account with a $500 deposit. You estimate you will write 17 checks a month and use an ATM from other banks about twice a week. Bank A charges $1.30 per check if you drop under a minimum balance of $100, but you can use another bank's ATM without a fee. Bank B has free checking but charges $1.30 each time you use another bank's ATM. Calculate the difference in fees between the two banks over the course of one year for the following scenarios: (Leave no cells blank - be certain to enter "0" wherever required. Round your answers to 1 decimal place.)

A. Your balance slips below $100 every other month.

B. Your balance slips below $100 every other month, but you are now able to pay a bill online each month, dropping the number of checks you have to write to sixteen monthly. You also find you are only using the other bank's ATM about once a week.

C. You maintain a minimum balance of $500, write ten checks a week, and use another bank's ATM only about once a month.