Everything Christmas Emporium expects a seasonal profit of close to 1 billion dollars. A typical monthly ledger balance during the season is 3.2 million dollars with a deposit float of 1.15 million dollars. Arcadia Bank pays an earnings credit rate of 0.25%. The reserve requirement ratio is 10% and the monthly service charges equal $385. How much will the bank debit from the firm's account (for the monthly service charge)? Assume 30 days in a month. (Note: round answer to two decimal places)
Everything Christmas Emporium expects a seasonal profit of close to 1 billion dollars. A typical monthly ledger balance during the season is 3.2 million dollars with a deposit float of 1.15 million dollars. Arcadia Bank pays an earnings credit rate of 0.25%. The reserve requirement ratio is 10% and the monthly service charges equal $385. How much will the bank debit from the firm's account (for the monthly service charge)? Assume 30 days in a month. (Note: round answer to two decimal places)
Chapter16: Working Capital Policy And Short-term Financing
Section: Chapter Questions
Problem 25P
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