1. Brad Kellogg maintains a monthly balance in his checking account of approximately $150, writes about 25 checks a month, and makes three deposits each month.  How would Brad decide which one of the following checking accounts he should use?  Bank A: regular checking account with a monthly fee of $4.50 for an unlimited number of checks, no monthly balance requirement, and no interest earnings; Bank B: interest-bearing checking account paying 4 percent interest on balances over $300 and a monthly service charge of $6 if the balance falls below $300; Bank C: special checking account that charges 35 cents a check and 20 cents for each deposit, no interest earnings; or Bank D: minimum-balance account that requires a $200 minimum balance to avoid the $10 monthly fee, two percent interest paid if the balance remains above $400.Brad Kellogg maintains a monthly balance in his checking account of approximately $150, writes about 25 checks a month, and makes three deposits each month.  
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3. How would Brad decide which one of the following checking accounts he should use?  
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5. Bank A: regular checking account with a monthly fee of $4.50 for an unlimited number of checks, no monthly balance requirement, and no interest earnings; 
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7. Bank B: interest-bearing checking account paying 4 percent interest on balances over $300 and a monthly service charge of $6 if the balance falls below $300; 
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9. Bank C: special checking account that charges 35 cents a check and 20 cents for each deposit, no interest earnings; or 
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11. Bank D: minimum-balance account that requires a $200 minimum balance to avoid the $10 monthly fee, two percent interest paid if the balance remains above $400.

Answer rating: 100% (QA)

To decide which checking account Brad should use he should compare the monthly fees and interest earnings of each account taking into account his aver... View the full answer