The following information is for Question 4-6:

You had such a busy schedule last year that you didn't really pay attention to the fees charged by your bank on your checking account. You finally found the time to sit down and review those fees: on average, you paid $70 in overdraft fees every month last year. You also paid $12 monthly service fees for January, July, August and November because your account balance was below the $1,000 daily minimum in those months and you didn't qualify for any of the other conditions that would waive the monthly service fee.

4. How much fee did you pay in total last year?

a. $888

b. None of the other answers

c. $82

d. $984

5. According to your research, the highest APY of a 1 year CD (Certificate of Deposit) offered by FDIC-insured banks is about 3.85%.

Assume there is no tax, how much, approximately, do you need to put into the 1 year CD to earn enough interest in a year to offset the total fees ( overdraft fees and monthly service fees combined) you paid on your checking account?

a. $23,065

b. $25,558

c. $21,818

d. None of the other answers

6. According to your research, the highest APY of a 1 year CD (Certificate of Deposit) offered by FDIC-insured banks is about 3.85%. Assume your tax rate is 15%, how much, approximately, do you need to put into the 1 year CD to earn enough interest after tax in a year to offset the total fees ( overdraft fees and monthly service fees combined) you paid on your checking account?

a. $25,668

b. $27,135

c. $30,069

d. $2,506