Here's the question you clicked on:

55 members online
  • 0 replying
  • 0 viewing


  • 3 years ago

If a person has ATM fees each month of $18 for 8 years, what would be the total cost of those bank fees

  • This Question is Closed
  1. philschmit63
    • 3 years ago
    Best Response
    You've already chosen the best response.
    Medals 0

    The simple answer to your question is: ($18.00*12)*8=$1,728.00. But lets have some fun with the funds instead of giving it to the bank for the privilege of withdrawing your own money. You could create an annuity with the $18.00/month by depositing your money every month into a savings account. With the crappy savings account interest rates currently, you would typically gain interest at .05% annually. Using the Future value of an annuity calculation: FVAn= PMT*((1+i)^n-1)/i. Where PMT=monthly payment of $18.00, i=annual interest rate divided by the number of months in the year(.0005/12=.00004167), n= number of payment periods in annuity(12months*8years=96)= $1731.42 is the total for the eight years. This includes the principal payment of $1728.00 plus $3.00 in interest! I know this does not sound like a lot of money but this is also a rough time in our economy for simple risk free investing.

  2. Not the answer you are looking for?
    Search for more explanations.

    • Attachments:

Ask your own question

Sign Up
Find more explanations on OpenStudy
Privacy Policy