Check Writing Fees. Randy, a student, has $117 to deposit in a new chequing account, but Randy knows he will not be able to maintain a minimum balance. He will not use an ATM card, but will write a large number of cheques. Randy is trying to choose between the unlimited check writing offered by South Trust and the low per-check fee offered by Sun Coast. How many checks would Randy have to write each month for the account at South Trust to be the better option?

Check Writing Fees. Randy, a student, has $117 to deposit in a new chequing account, but Randy knows he will not be able to maintain a minimum balance. He will not use an ATM card, but will write a large number of cheques. Randy is trying to choose between the unlimited check writing offered by South Trust and the low per-check fee offered by Sun Coast. How many checks would Randy have to write each month for the account at South Trust to be the better option?

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter5: Managing Checking And Savings Accounts

Section: Chapter Questions

Problem 7FPC

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Randy, a student, has $534 to deposit in a new chequing account, but Randy knows he will not be able to maintain a minimum balance. He will not use an ATM card, but will write a large number of cheques. Randy is trying to choose between the unlimited check writing offered by South Trust and the low per-check fee offered by Sun Coast. How many checks would Randy have to write each month for the account at South Trust to be the better option?
Your friend is trying to decide on two different checking accounts. Your friend just graduated high school and has a part-time job while waiting for technical school to begin. Checking account number one has a minimum balance requirement of $750, a direct deposit requirement, and a $12 fee each month. Checking account number 2 is a student checking account. It is free as long as you can prove he is a student. Checking account number 2 only had a minimum balance of $350. Which do you think he should choose? Why?
Maggie wants to open a checking account that will be the least expensive, given her normal financial transactions. She typically writes 15 checks a month and uses an ATM 35 times a month. Her monthly minimum checking balance falls to about $350 on an average. Which of the following accounts would be least expensive for Maggie? (Show all your work.) (10 points)Account A:No monthly fee is charged if a minimum balance of at least $300 is maintained.A $5.00 fee is charged in any month the minimum balance falls below $300.An ATM fee of $0.10 per transaction is charged on all transactions. Account B:No monthly fee is charged if a minimum balance of at least $500 is maintained.A $3.00 fee plus $0.10/check is charged in any month the minimum balance falls below $500.There is no ATM fee on transactions.
Jenna issued a check amounting to P50,000 on January 15, 2021 knowing that she has a balance of P25,000 on her checking account. The said check was post dated on January 30, 2021, thus, she has 15 days fund the account. The said check was issued to Ruben for the payment of 20 bags of Japanese rice. On April 10, 2021, Ruben encashed the check but it was dishonored by the bank for insufficiency of funds. Can Ruben file an action against Jenna for violating BP 22? A. No because the check was post dated and that Jenna has 5 banking days to fund the check from notice of dishonor. B. No, because Ruben failed to encsash within a reasonable period C. Yes, because Jenna issued with knowledge that she has no sufficient fund at the time of issuing the check D. Yes because Jenna failed to keep sufficient balance for a period of 90 days from the date appearing on the check
Christopher just received his checking account statement from his bank. He has a NOW account with free checking that pays 0.75% APR on the balance and requires a $500 minimum balance. His statement shows that he currently has a balance of $3,950. In looking at his statement he notices that his car payment check for $400 is still outstanding, and that his recently received payroll deposit of $3,600 had not posted at the time the statement was created. His normal living expenses average $1,500 per month including his car payment. Other than his car loan, he rarely writes any checks as he prefers to use his debit card and ATM card for day-to-day living expenses. He pays his credit card balance in full every month. Other than his checking account he does not own any investments. He has always dreamed of owning a house, and would like to buy one within the next five years. He has access to a 401(k) pension plan at work where his employer will match contributions up to 6% of his salary. He…
Christopher just received his checking account statement from his bank. He has a NOW account with free checking that pays 0.75% APR on the balance and requires a $500 minimum balance. His statement shows that he currently has a balance of $3,950. In looking at his statement he notices that his car payment check for $400 is still outstanding, and that his recently received payroll deposit of $3,600 had not posted at the time the statement was created. His normal living expenses average $1,500 per month including his car payment. Other than his car loan, he rarely writes any checks as he prefers to use his debit card and ATM card for day-to-day living expenses. He pays his credit card balance in full every month. Other than his checking account he does not own any investments. He has always dreamed of owning a house, and would like to buy one within the next five years. He has access to a 401(k) pension plan at work where his employer will match contributions up to 6% of his salary. He…
Braun issued a $35 check to Rice. Rice took the check to Braun’s bank and had it certified. Rice then raised the amount to $350 and negotiated it to Turner. Turner presented the check for payment and received $350. When Braun received her canceled checks, she noticed the alteration and notified the bank. Who will suffer the loss?
Banks are finding more ways to charge fees,such as a $34.60 overdraft fee. Sue McVickers has an account in Fayetteville;she has received her bank statement with this $34.60 charge.Also, she was charged a $14.20 service fee; however, the good news is she earned $6.25 interest .her bank statement's balance was 546.45 but it did now shows the $1288.65 deposit she had made. Sue's checkbook balance shows $731.70.The following checks have not cleared: Number 250 $645.45 ; Number 253,$291.00 and number 254, $209.50
Natalie decides that she cannot afford to hire John to do her accounting. One way that she can ensure that her cash account does not have any errors and is accurate and up-to-date is to prepare a bank reconciliation at the end of each month. Natalie would like you to help her. She asks you to prepare a bank reconciliation for June 2020 using the information below.Please refer to the image attached Additionally, take the following information into account. On June 30th, there were two outstanding checks: #595 for $238 and #604 for $297. Premier Bank made a posting error to the bank statement: Check #603 was issued for $425, not $452. The deposit made on June 20 was for $125, which Natalie received for teaching a class. Natalie made an error in recording this transaction. The electronic funds transfer (EFT) was for Natalie’s cell phone use. Remember that she uses this phone only for business. The NSF check was from Ron Black. Natalie received this check for teaching a class to Ron’s…
Sidney took a $300 cash advance by using checks linked to her credit card account. The bank charges a 2 percent cash advance fee on the amount borrowed and offers no grace period on cash advances. Sidney paid the balance in full when the bill arrived. a)What if she had made the purchase with her credit card and paid off her bill in full promptly? Assume the credit card has a grace period.
Supposed that you have a business, and you are going to prepare checks for thefollowing: (You can create your own check or simply download a blank check) 150,000 payable to Ronald James Abad for the consultation fee. 65, 350.90 for the payment equipment purchased from Abenson ApplianceStore
June Xu is a registered nurse who earns $3,250 per month after taxes. She has been reviewing her savings strategies and current banking arrangements to determine if she should make any changes. June has a regular checking account that charges her a flat fee per month, writes an average of 18 checks a month, and carries an average balance of $795 (although it has fallen below $750 during 3 months of the past year). Her only other account is a money market deposit account with a balance of $4,250. She tries to make regular monthly deposits of $50–$100 into her money market account but has done so only about every other month. Of the many checking accounts June’s bank offers, here are the three that best suit her needs.• Regular checking, per-item plan: Service charge of $3 per month plus 35 cents per check.• Regular checking, flat-fee plan (the one June currently has): Monthly fee of $7 regardless of how many checks written. With either of these regular checking accounts, she can avoid…

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	South Trust Bank	Sun Coast Bank
ATM charges:
Home bank	Free	Free
Other bank	$1.28 per use	$1.28 per use
Checking:
Minimum deposit	$1	$1
Minimum balance required to avoid fees*	$500	N/A
Monthly fees	$8.00	$2.00
Check-writing charges	Unlimited	Each cheque 50 cents