Chapter 4

Financial Planning Exercise 5

Determine the annual net cost of these checking accounts. A "-" sign must precede any negative net cost answers. Round your intermediate calculations to two decimal places.

1. Monthly fee $5, check-processing fee of 20 cents, average of 32 checks written per month. Round the answer to the nearest cent.

1. Annual interest of 3.0% paid if balance exceeds $900, $8 monthly fee if account falls below minimum balance, average monthly balance $995, account falls below $900 during 4 months. Round the answer to the nearest cent.