Emma usually has about $1000 in her account at any given time during the month. She usually visits the ATM twice a week and is interested in online banking options. Bank R has 10 ATMs within a 5 mile radius of Emma's home. Bank S has 1 ATM 10 miles from Emma's work. Which bank should she choose?
A. Bank R
B. Bank S
C. Bank T
D. Bank R and S
Answer (2)
Emma should choose Bank R because it offers more convenient ATM access near her home, despite having a slightly higher monthly fee compared to Bank S. The overall convenience of having multiple ATMs nearby outweighs the lower costs of Bank S. Thus, the recommended option is A. Bank R.
;
Calculate monthly ATM fees for Bank R ($16.00) and Bank S ($12.00).
Note that Emma meets the minimum balance requirement for Bank S.
Consider that both Bank R and Bank S offer online banking.
Determine that Bank R is the best choice due to convenient ATM locations near Emma's home, despite the slightly higher ATM fees. The final answer is a . B ank R
Explanation
Analyzing Emma's Banking Needs Let's analyze Emma's banking needs to determine the best bank for her. We need to consider the ATM fees, minimum balance requirements, online banking options, and ATM locations for each bank.
Calculating Monthly ATM Fees First, let's calculate the monthly ATM fees for each bank. Emma visits the ATM twice a week, which means she visits it 8 times a month. Bank R charges $2.00 per non-bank ATM transaction, so her monthly ATM fee would be: 8 × $2.00 = $16.00 Bank S charges $1.50 per non-bank ATM transaction, so her monthly ATM fee would be: 8 × $1.50 = $12.00 Bank T charges $2.00 per non-bank ATM transaction, so her monthly ATM fee would be: 8 × $2.00 = $16.00
Considering Minimum Balance Requirements Next, let's consider the minimum balance requirements. Emma usually has $1000 in her account, so the $25 minimum balance requirement for Bank S is not an issue for her. Bank R and Bank T have no minimum balance requirements.
Considering Online Banking Options Now, let's consider the online banking options. Emma wants online banking, so Bank R and Bank S are options, but Bank T is not.
Considering ATM Locations Finally, let's consider the ATM locations. Bank R has 10 ATMs within a 5-mile radius of Emma's home, which is very convenient. Bank S has 1 ATM 10 miles from Emma's work.
Comparing Banks R and S Comparing Bank R and Bank S:
Bank R: $16.00 monthly ATM fee, online banking, ATMs near home.
Bank S: $12.00 monthly ATM fee, online banking, ATM near work. Since the ATM fee for Bank S is lower and Emma wants online banking, Bank S might be a good option. However, Bank R has ATMs closer to her home, which is more convenient for her. The difference in ATM fees is only $4.00 per month, so the convenience of having ATMs near her home might be worth the extra cost.
Determining the Best Bank for Emma Considering all factors, Bank R is the better choice for Emma because it offers online banking and has ATMs conveniently located near her home. Although Bank S has a slightly lower ATM fee, the convenience of Bank R's ATM locations outweighs the cost savings.
Final Answer Therefore, the best answer is: a. Bank R
Examples
Choosing a bank involves balancing costs, convenience, and services. For instance, consider Sarah, who frequently travels and needs access to ATMs in multiple cities. By evaluating different banks' ATM networks and fees, Sarah can minimize expenses and ensure easy access to her funds while traveling. Similarly, understanding interest rates and account maintenance fees helps in making informed financial decisions.
