Problema Solution
Pete Moore opened a no-frills checking account at the East Cambridge Savings. The service charge for the checking account is $2 per month plus 25 cents per check. Assuming Pete writes 8 checks per month, what will this no-frills checking account cost him for the year?
Answer provided by our tutors
Since 1 year has 12 months the service charge of checking account will be 2*12 = $24 for the whole year and 0.25*12*8 = $24 for all the checks in the year.
$24 + $24 = $48
The no-frills checking account costs $48 for the year.