What would be the net annual cost of the following checking accounts? a. Monthly fee, $3.75;...

What would be the net annual cost of the following checking accounts?

a. Monthly fee, $3.75; processing fee, .35 cents per check. Checks written, an average of 14 a month.

b. Interest earnings of 4 percent with a $550 minimum balance; average monthly balance, $650; monthly service charge of $12 for falling below the minimum balance, which occurs three times a year (no interest earned in these months)

Solutions

Expert Solution

jeff jeffy answered 3 weeks ago

Next > < Previous

Related Solutions

1. What is not a cost of keeping money in a checking account? A) Transaction fee...

1. What is not a cost of keeping money in a checking account? A) Transaction fee for ATM transaction B) Fees for various services like stop payments C) Minimum balance requirement for free checking D) FDIC insurance 2. You have estimated that you need $6,500 in liquid assets for an emergency fund. You currently have only $1,000, which is invested in a savings account earning 3percent nominal interest, compounded monthly. Your current budget leaves $290per month to apply to this...

What is the annual opportunity cost of a checking account that requires a minimum balance of...

What is the annual opportunity cost of a checking account that requires a minimum balance of $240 to avoid service charges? Assume an interest rate of 2.5 percent. Round your answer to 2 decimal places.

A new machine will provide the following net annual cash inflows. If the cost of the...

A new machine will provide the following net annual cash inflows. If the cost of the machine is $12,000, what is the payback period? What is the discounted payback period if the discount rate is 10%? Year Cash Inflow 1 $ 1,345 2. 2,605 3 4,509 4 5,219 5 4,481 6 3,823 7 3,500

When checking the sales and account receivable accounts, the auditor would like to confirm the objectives...

When checking the sales and account receivable accounts, the auditor would like to confirm the objectives below: ITEMS AUDIT OBJECTIVES I Sales transactions that are recorded actually occurred II The balance presented on account receivables aged trial balance (ATB) for each customer exists on the balance sheet date Required: For each of the objectives listed above: (a) state the name of management assertion from which the audit objective is derived. (b) advise the auditor of one (1) substantive test they...

Which of the following accounts would not appear on a schedule of cost of goods manufactured?...

Which of the following accounts would not appear on a schedule of cost of goods manufactured? Multiple Choice Depreciation on factory equipment. Raw materials inventory. Wages payable. Indirect labor. Factory insurance expired.

a. Obtain the linear trend equation for the following data on new checking accounts at Fair...

a. Obtain the linear trend equation for the following data on new checking accounts at Fair Savings Bank and use it to predict expected new checking accounts for periods 16 through 19. (Round your intermediate calculations and final answers to 2 decimal places.) Period New Accounts Period New Accounts Period New Accounts 1 200 6 239 11 281 2 215 7 246 12 275 3 211 8 250 13 283 4 229 9 256 14 288 5 235 10 267...

what would be the effect on the Cost of goods sold, Ending inventory, net income and...

what would be the effect on the Cost of goods sold, Ending inventory, net income and income tax if the prices of inventory are decreasing (deflation). Using LIFO and FIFO

Many consumers use checking accounts and credit, often in the form of credit cards. What are...

Many consumers use checking accounts and credit, often in the form of credit cards. What are some of the advantages and disadvantages of having a checking account? What are some of the advantages and disadvantages of having a credit card? What are some strategies you could use to manage credit cards to avoid paying high-interest rates and fees? How can planning to manage your accounts lead you to be more productive and better equipped to reflect on your financial priorities?

Which of the following statement is NOT correct? 12b-1 Fee is not a trading cost for...

Which of the following statement is NOT correct? 12b-1 Fee is not a trading cost for investors when trading common stocks Mutual funds investors pay taxes on capital gain and dividends None of the above Price Impact is not a trading cost for investors when trading common stocks There is a decrease in number of IPOs after 2000

What scale is used to measure 40 students checking accounts? What kind of variable 40 students...

What scale is used to measure 40 students checking accounts? What kind of variable 40 students checking account? What are the limits for outliers?

Subjects