Jana wants an account with the lowest fees. Which checking account would be best for Jana?
Account A
Account B
Account C
Account D
Answer (2)
Account A has no ATM fees but may have a $10 monthly fee.
Account B has no monthly fee but charges $3 for non-ABC ATMs.
Account C has no monthly fee but charges $3 per ATM transaction.
Account D may have a $7 monthly fee and charges $2.50 per ATM transaction.
If Jana can get direct deposit, Account A is the best. Otherwise, Account B or C might be better if she rarely uses ATMs.
Without more information, it's hard to definitively say which account is best, but Account A is a strong contender if Jana can get direct deposit.
The best account for Jana is Account A, assuming she can get direct deposit. A cco u n t A
Explanation
Analyzing the Problem Jana wants an account with the lowest fees. We need to analyze the fee structures of the four accounts (A, B, C, and D) to determine which one is the most cost-effective for her.
Understanding the Account Fees Account A has no ATM fees but has a monthly fee of $10, which can be waived with direct deposit. Account B has no monthly fee but charges $3 for using non-ABC ATMs. Account C has no monthly fee but charges $3 per ATM transaction. Account D has a monthly fee of $7, which can be waived by linking a savings account, and charges $2.50 per ATM transaction.
Comparing Fees in Different Scenarios To determine the best account, we need to consider Jana's ATM usage and whether she can meet the requirements to waive the monthly fees for accounts A and D. Let's consider a few scenarios:
Jana uses ATMs frequently at non-ABC banks and cannot get direct deposit or link a savings account:
Account A: $10 monthly fee.
Account B: High ATM fees (e.g., 10 transactions would cost $30).
Account C: High ATM fees (e.g., 10 transactions would cost $30).
Account D: $7 monthly fee + ATM fees (e.g., 10 transactions would cost $25).
Jana uses ATMs frequently at non-ABC banks and can get direct deposit or link a savings account:
Account A: $0 monthly fee, $0 ATM fees.
Account B: High ATM fees (e.g., 10 transactions would cost $30).
Account C: High ATM fees (e.g., 10 transactions would cost $30).
Account D: $0 monthly fee + ATM fees (e.g., 10 transactions would cost $25).
Jana rarely or never uses ATMs:
Account A: $10 or $0 monthly fee (depending on direct deposit).
Account B: $0 monthly fee.
Account C: $0 monthly fee.
Account D: $7 or $0 monthly fee (depending on linked savings).
Determining the Best Account If Jana can get direct deposit (Account A) or link a savings account (Account D), and uses ATMs frequently, Account A would be the best choice. If Jana cannot get direct deposit or link a savings account and uses ATMs frequently, Account D would be the best choice. If Jana rarely or never uses ATMs, Account B or C would be the best choice.
Final Recommendation Without knowing Jana's ATM usage habits or whether she can get direct deposit or link a savings account, we can't definitively say which account is best. However, if we assume Jana wants the lowest possible fees and can get direct deposit, Account A is the best option. If she cannot get direct deposit and rarely uses ATMs, Account B or C would be the best option.
Examples
Understanding different checking account options is similar to choosing a phone plan. Some plans have a higher monthly fee but unlimited data, while others have a lower monthly fee but charge for data usage. To make the best choice, you need to consider your usage habits. If you use a lot of data, the plan with unlimited data might be cheaper in the long run, even if it has a higher monthly fee. Similarly, with checking accounts, you need to consider your ATM usage, minimum balance requirements, and other factors to determine which account is the most cost-effective for you.
The best checking account for Jana, if she can utilize direct deposit, is Account A due to its lack of fees. If she cannot get direct deposit and rarely uses ATMs, Account B or C could be more suitable. However, without additional details about her ATM usage, these conclusions are based on general assumptions.
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