Please question answer What is the annual opportunity cost of a checkingaccount that requires a $500 minimum balance toavoid service charges? Assume an interest rate of 3percent.

Given:Minimum balance required = $500Annual interest rate = 3% (0.03 in decimal form)Opportunity…

Answered: What is the annual opportunity cost of…

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter18: Long-term Debt Financing

Section: Chapter Questions

Problem 3BIC

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What is the annual opportunity cost of a checking account that requires a $500 minimum balance to avoid service charges? Assume an interest rate of 3 percent.