1. **State the problem:** We need to compare the transaction fees for cash withdrawals at Freedom Bank and Choice Bank.
2. **Given:**
- Freedom Bank charges a flat fee of $5.00 per withdrawal.
- Choice Bank charges 4% of the cash withdrawal amount.
3. **Formula for Choice Bank fee:**
$$\text{Fee} = 0.04 \times \text{Withdrawal Amount}$$
4. **Compare fees:**
- If the withdrawal amount is $x$, then Choice Bank fee is $0.04x$.
- Freedom Bank fee is always $5$.
5. **Analyze when Choice Bank fee is less than Freedom Bank fee:**
$$0.04x < 5$$
Divide both sides by 0.04:
$$\cancel{0.04}x < \frac{5}{\cancel{0.04}}$$
$$x < 125$$
6. **Interpretation:**
- If you withdraw less than $125, Choice Bank fee is less than Freedom Bank fee.
- If you withdraw exactly $125, fees are equal.
- If you withdraw more than $125, Choice Bank fee is more than Freedom Bank fee.
7. **Conclusion:**
The fee at Choice Bank may be less than Freedom Bank depending on how much money is withdrawn.
**Final answer:** C. The fee at Choice bank may be less than Freedom Bank depending on how much money is being withdrawn.
Bank Fee Comparison 63E079
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