UNSOLVED QUESTION

Question

The cost of cash withdrawal at a bank counter involves a basic fee plus 1.3% of the value withdrawn, up to a maximum of $34.00.

a) Calculate 1.3% as a decimal number

Table:

Withdrawal ($): 0.00 | 10.00 | 20.00 | 30.00 | 40.00 | 100.00 | 500.00 | 2,326.93

Charges ($): : 3.75 | 3.88 | 4.01 | 4.14 | | | |

b) Use the table to determine the basic fee

c) Calculate 1.3% of $2,400 and add the basic fee

d) What is the minimum amount a customer can withdraw if he pays the maximum charge?

Answer 1

a)1.3% as a decimal number. percents are fractions over 100. so 1.3% can be rewritten as:

1.3/100 = 0.013

b) The easiest way to find the basic fee is by looking at when withdrawal equals $0.00. since 1.3% of 0 is still zero, the charges is just the basic fee. so the basic fee is $3.75.

c) 1.3% of 2400:

0.013 *2400 = 31.2

now add the charge of 3.75:

31.2 +3.75 = 34.95

The charge for withdrawing 2400 is 34.95

d)the maximum charge is $34. (I am assuming the basic fee plus to 1.3% would never exceed $34):

subtract the basic fee to find the 1.3%:

34 - 3.75 = 30.25

now figure out 30.25 is 1.3% of what.

0.013x=30.25 = 30.25/0.013 =x

rounded to two decimal places the answer would be $2326.92

Answer 2

a)

Table:

Withdrawal ($): 0.00 | 10.00 | 20.00 | 30.00 | 40.00 | 100.00 | 500.00 | 2,326.93

Charges ($): : 3.75 | 3.88 | 4.01 | 4.14 | 4.27 | 5.05 | 10.25 | 34.00

b)

The basic fee is 3.75.

c)

2,400 x 1.3% + 3.75 = 34.95

Since the maximum fee is 34.00, the customer only needs to pay 34.00

d)

Based on the table in a), 2,326.93 is the minimum a customer can withdraw if he pays the maximum charge.