Answer:
To determine which bank is more cost-effective, we need to consider how many transactions we will make per month. Let's call the number of transactions "t".
Bank A charges a flat fee of $45 per month, regardless of how many transactions we make. So the total cost of using Bank A for one month is:
Total cost for Bank A = $45
Bank B charges a monthly fee of $20, plus $0.70 for each transaction. So the total cost of using Bank B for one month is:
Total cost for Bank B = $20 + ($0.70 x t)
To determine which bank is more cost-effective, we need to find the value of "t" that makes the total cost of Bank B equal to the total cost of Bank A.
$45 = $20 + ($0.70 x t)
$25 = $0.70 x t
t = $25 / $0.70
t ≈ 36
So if we make 36 or more transactions per month, Bank A is more cost-effective. If we make fewer than 36 transactions per month, Bank B is more cost-effective.