. Calculating the net costs of checking accounts. Determine the annual net cost of these checking accounts: Monthly fee $4, check-processing fee of 20 cents, average of 23 checks written per month Annual interest of 2.5 percent paid if balance exceeds $750, $8 monthly fee if the account falls below the minimum balance, average monthly balance $815, account falls below $750 during 4 months

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abiolataiwo2015 abiolataiwo2015 · Answer 1 · 2021-02-15T15:00:32+01:00

Answer:

A. Net annual cost= $103.2

B. Net annual cost= $6,816

Explanation:

Calculation forb the net costs of checking accounts

A. Net annual cost=[23 checks x 12 (months) x 0.20 + [4.00 x 12(mo's)]

Net annual cost=55.2+48

Net annual cost= $103.2

Therefore the Net annual cost will be $103.2

B.

First step is to calculate the Increase on Net annual cost increase

Net annual cost Increase=2.5% (750.00)

Net annual cost Increase = $18.75(12)

Net annual cost Increase= 225

Second step is to calculate the dollar amount per year if the account is within the minium balance

Fee =8(12)

Fee = 96 dollars a year

Now let calculate Net annual cost

Net annual cost= [12(815)-4 (750)]+36 fees

Net annual cost= (9,780 -3000)+36 fees

Net annual cost =6,780 + 36 fees

Net annual cost= $6,816

Therefore the Net annual cost will be $6,816