Gareth has $2,000 to invest. putting the money in a savings account at his local bank will earn him 2.2% annual interest and gives him the ability to make atm withdrawals from that bank’s atms. putting the money in an online savings account will earn him 4.85% annual interest, but he will be charged $3 every time he makes an atm withdrawal. assuming that gareth’s atm withdrawals do not affect the amount of interest he earns, roughly how many atm withdrawals must gareth make every year for the local savings account to be a better deal than the online savings account?

18 ATM withdrawals.

Step-by-step explanation:

Let x be the number of ATM withdrawals.

We have been given that Gareth has $2,000 to invest. Putting the money in a savings account at his local bank will earn him 2.2% annual interest.

Let us find the amount of interest earned from the local bank.

We are also told that putting the money in an online savings account will earn him 4.85% annual interest.

We are told that local bank charges nothing for ATM withdrawals, while online savings account charges $3 per ATM withdrawal, so we  need to make x withdrawals from both accounts such that:

Let us solve for x.

Upon subtracting 97 from both sides of or equation we will get,

Therefore, Gareth must make 18 ATM withdrawals every year for the local savings account to be a better deal than the online savings account.