You recently changed to an online banking account. It also came with a debit car

Question

You recently changed to an online banking account. It also came with a debit card Upon reading the conditions of the account, you found that in addition to a $6 monthly fee, there is a $0.40 for each swipe of the debit card Therefore, you consider acquiring a separate credit card. The credit card comes with a $240 annual fee. a) Let x represent your number of monthly transactions, i.e., both electronic checks and credit card swipes. Write a linear function that represents the total fees assigned to your online banking account each month. b) What is the monthly cost of the credit card you are considering? c) How many transactions do you need to average each month to justify the additional credit card? You have opened a checking account at a local bank. The fee for insufficient funds is $25.00 per transaction, but you can apply for overdraft protection at $8 00 per day. Last month, you had two unexpected bills: $595 to replace the fan radiator on your car and $82 to fix your cell phone. You wrote checks for both bills. Your checking account balance was $472 64 at the time. You forgot to deposit money to cover the checks. The bank called a week later to let you know that you were overdrawn You had to attend to your balance immediately or another day would have added to your charges beyond the one already in the system. (The order of the transactions does not matter.) a) Because you did not have overdraft protection, how much money did you need to deposit to bring your balance back to $0.00 b) If you had overdraft protection, how much money would you have needed to deposit to bring your balance back to $0.00?

Explanation / Answer

2) Let x be the number of transactions

Account conditions $6 per month and $0.40 per swipe

a) So, Total fees = 6 + 0.4x

b) Annual fee = $240 for card we are considering

Monthly cost = 240/12 = $20

c) when the fees charged by account becomes more than the monthly charges of credit card,then

it is justfied to have additional credit card

6 +0.4x >20

0.4x >14

x> 35

More than 35 transactions per month

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