Question

Parsons bank offers two checking account plans. The no frills plan charges 40 cents per check whereas the simple checking plan costs $7 per month plus 20 cents per check. For what number of checks per month will the simple checking plan cost less?

Answer 1

The plans would be equal at 35 checks per month so the simple checking plan would cost less for 36 or more checks. 7 + .2x=.4x
7=.2x. X=35

Answer 2

For more than 35 checks the simple checking plan cost less.

Explanation:

Let for x number of checks per month will the simple checking plan cost less.

Given,

In no frill checking plan,

Per month charges = $ 0,

Charges for per check = 40 cents = $ 0.40,

Thus, the cost for x checks in a month = 0 + 0.40x = 0.40x

In simple checking plan,

Per month charges = $ 7,

Charges for per check = 20 cents = $ 0.20,

Thus, the cost for x checks in a month = 7 + 0.20x

Hence, we can write,

0.40x > 7 + 0.20x

0.20x > 7

x > 35

Therefore, for more than 35 checks the simple checking plan cost less.