Intercontinental Bank

$15.00 x 6 months = $90 $25.00 x 6 months = $150

$90 + $150 = $240 a year.

BOFA

$6.00 x 12 months = $72

$0.25 x 360 (30 check per month x 12) =$90

$2.00 x 36 (3 debit transactions per month x 12) = $72

$72 + $90 + $72 = $234 per year.

Interest = Principal x Rate x Time

A.) Use the simple interest formula to calculate the amount of interest John would earn per month if the Intercontinental Bank was offering 1.5% (.015) interest per year on checking accounts. (Note that John's average daily balance changes from $900 to $2,400 in the last six months of the year.) Round mostly amounts to the nearest cent when necessary. How much interest would John earn for the year?

B.) How much interest would John earn per month at Bank of America if it were offering 1% (0.1) interest per year on checking accounts? How much interest would John earn for the year?

C.) Recalculate the cost of doing business with Intercontinental Bank and Bank of America for a year.