Question

Checking account A charges a monthly service fee of $20 and a wire transfer

ee of $3, while checking account B charges a monthly service fee of $30 and
a wire transfer fee of $2. How many transfers would a person have to have for
the two accounts to cost the same?
A. 10
B. 0
C. 21
D. 31

Answer 1

10

Explanation:

Let's denote the number of wire transfers as "x". For checking account A, the total cost would be:

Total cost for A = Monthly service fee + (Wire transfer fee * Number of transfers)

Total cost for A = $20 + ($3 * x)

For checking account B, the total cost would be:

Total cost for B = Monthly service fee + (Wire transfer fee * Number of transfers)

Total cost for B = $30 + ($2 * x)

Now we want to find out how many transfers "x" would make the two accounts cost the same. So we set up an equation where the total costs are equal:

$20 + ($3 * x) = $30 + ($2 * x)

Now, let's solve for "x":

$3 * x - $2 * x = $30 - $20

$x = $10

So, the two accounts would cost the same when there are 10 wire transfers. Therefore, the answer is:

A. 10