Find the number checks written per month makes the first bank a better deal.

Question

one local bank charges $10 monthly fee plus 5 cents per  check written in that month while another bank charges $5 monthly fee plus 10 cents per check written in that month.Find the number checks written per month makes the first bank a better deal.

Answer 1

First, I would set an equation to determine how many checks (x) it takes to make each bank charge the same amount.

 

So, the first bank charges $10 plus 5 cents / check.  ( 10.00 + .05x)

 

Then, the second bank charges $5 plus 10 cents/ check. (5.00 + .10x)

 

Set them to be equal.....

 

10.00 + .05x = 5.00 + .10x

5.00 = .05x

x = 100

Therefore, anything over 100 would make the first bank a better deal, because it charges 5 cents per check and the second bank charges 10 cents per check.

So, at 101 checks written per month, the first bank is a better deal.