Additional Financial Planning Problems Chapter 5:

Refer to the following chart to answer problems 10-12:

1st Bank 2nd Bank 3rd Bank 4th Bank ATM Charges: Home Bank Free Free Free Free Other Bank 4 free, then $1 per $1.25 $1.25 $1.25 use Checking: Minimum Deposit $100 $25 $1 $1 Minimum Balance to Avoid Fees* N/A N/A $500 N/A Monthly fees $6 $7 $11 $2.50 Check writing 12 free, then 75 7 free, then 75 Unlimited Each check 25 charges cents per check cents per check cents *N/A means monthly fees apply irrespective of account balances.

10. Stuart wants to open a checking account with a $100 deposit. Stuart believes he will write 15 checks per month and use other banks’ ATMs eight times a month. He will not be able to maintain a minimum balance. Which bank should Stuart choose? 11. Julie wants to open a bank account with $75. Julie estimates that she will write 20 checks per month and use her ATM card at the home bank only. She will maintain a $200 balance. Which bank should Julie choose? 12. Veronica plans to open a checking account with her $1,200 tax refund check. She believes she can maintain a $500 minimum balance. Also, she estimates that she will write 10 checks per month and will use other banks’ ATM as many as 15 times per month. Which bank should she choose?