Chapter 4 Critical Thinking Case 1 Lan Chen's Savings and Banding Plans Lan Chen is a registered nurse who earns $3,250 per month after taxes. She has been reviewing her savings strategies and current banking arrangements to determine if she should make any changes. Lan has a regular checking account that charges her a flat fee per month, writes an average of 18 checks a month, and carries an average balance of $795 (although it has fallen below $750 during 3 months of the past year). Her only other account is a money market deposit account with a balance of $4,250. She tries to make regular monthly deposits of $50-$100 into her money market account but has done so only about every other month of the many checking accounts Linn's bank offers, here are the three that best sult her needs. Regular checking, partem plan: Service charge of $2 per month plus 34 cents per check. Regular checking, flat-fee plan (the one La currently has): Monthly fee of $6 regardless of how many checks written with either of these regular checking accounts, she can avoid any charges by keeping a minimum daily balance of $750. Interest checking: Monthly service charge of 56; Interest of 3%, compounded daily (refer to Exhibit 4,8). With a minimum balance of $1,500, the monthly charge is waived Lan's bank also offers CDs for a minimum deposit of $500; the current annual interest rates are 3.5% for 6 months, 1.75% for 1 year and 4% for 2 years 1. Calculate the annual cost of each of the three accounts, assuming that's banking habits remain the same. Round the answers to the nearest ont. Do not round your Intermediate calculations Regular checking, per-item plan Regular checking, hat fee plan Interest checking Which plan would you recommend? Memplen Reflate per marcha the interest checking account and increasing her minimum balance to at least $1,500 to avoid service charges Interest checking: Monthly service charge of $6; interest of 3%, compounded daily (refer Lian's bank also offers CDs for a minimum deposit of $500; the current annual interest rates are 1. Calculate the annual cost of each of the three accounts, assuming that Lian's banking intermediate calculations. Regular checking, per-item plan Regular checking, fiat fee plan $ Interest checking $ Which plan would you recommend? -Select- 2. Should Lian consider opening the interest checking account and increasing her minimum -Select- Yos 3 No advice would you give Lian about her checking account and savings strategy The input in the box below will not be graded, but may be reviewed and considered by yo