In: Finance
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)