Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN: 9780357033609
Author: Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher: Cengage Learning
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Textbook Question
Chapter 4, Problem 5FPE
Calculating the net costs of checking accounts. Determine the annual net cost of these checking accounts:
- a. Monthly fee $4, check-processing fee of 20 cents, average of 23 checks written per month
- b. Annual interest of 1.5 percent paid if balance exceeds $750, $8 monthly fee if account falls below minimum balance, average monthly balance $815, account falls below $750 during four months
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Determine the annual net cost of these checking accounts. A "-" sign must precede any negative net cost answers. Round your intermediate calculations to two decimal places.
Monthly fee $4, check-processing fee of 15 cents, average of 11 checks written per month. Round the answer to the nearest cent.
$
Annual interest of 3.5 percent paid if balance exceeds $800, $8 monthly fee if account falls below minimum balance, average monthly balance $850, account falls below $800 during 4 months. Round the answer to the nearest cent.
Calculating the net costs of checking accounts. Determine the annual net cost of these checking accounts:
a. Monthly fee $4, check-processing fee of 20 cents, average of 23 checks written per month.
b. Annual interest of 1.5% paid if balance exceeds $750, $8 monthly fee if account falls between minimum balance, average monthly balance $815, account falls below $750 durng 4 months.
What would be the net annual cost of the following checking accounts?
(a) Monthly fee, $2.80; processing fee, $0.35 cents per check; checks written, an average of 23 a month. (Do not round intermediate
calculations. Input the answer as a positive value. Round your answer to 2 decimal places.)
Net annual cost
(b) Interest earnings of 7 percent with a $500 minimum balance; average monthly balance, $700; monthly service charge of $16 for
falling below the minimum balance, which occurs three times a year (no interest earned in these months). (Do not round intermediate
calculations. Input the answer as a positive value. Round your answer to 2 decimal places.)
Net annual cost
Chapter 4 Solutions
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
Ch. 4 - Prob. 1LOCh. 4 - Describe todays financial services marketplace,...Ch. 4 - Prob. 3LOCh. 4 - Prob. 4LOCh. 4 - Prob. 5LOCh. 4 - Develop a cash management strategy that...Ch. 4 - Adapting to a low-interest-rate environment. A...Ch. 4 - Prob. 2FPECh. 4 - Choosing a new bank. Youre getting married and...Ch. 4 - Prob. 4FPE
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What Is A Checking Account?; Author: The Smart Investor;https://www.youtube.com/watch?v=vGymt1Rauak;License: Standard Youtube License