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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.

  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.  

  2. How would Brad decide which one of the following checking accounts he should use?  

  3. 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; 

  4. 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; 

  5. Bank C: special checking account that charges 35 cents a check and 20 cents for each deposit, no interest earnings; or 

  6. 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.

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