Determine the annual net cost of these checking accounts:
a. Monthly fee $4, check-processing fee of 20 cents, average of 23 checks written per
month
12 [4 + (0.2 * 23)] = ?
To determine the annual net cost of the checking account, we need to consider the monthly fee, check-processing fees, and the number of checks written per month. Here's how you can calculate it:
1. Start by calculating the total monthly check-processing fee:
- Multiply the number of checks written per month (23) by the check-processing fee (20 cents).
- 23 checks * $0.20 = $4.60
2. Add the monthly fee to the total monthly check-processing fee:
- $4 (monthly fee) + $4.60 (check-processing fee) = $8.60
3. Multiply the total monthly cost by 12 to get the annual net cost:
- $8.60 (total monthly cost) * 12 = $103.20
So, the annual net cost of this checking account is $103.20.