Problem 5-10 Comparing Costs of Checking Accounts [LO5-5] What would be the net annual cost of the following checking accounts? a. Monthly fee, $2.40; processing fee, $0.20 cents per check; checks written, an average of 25 a month. Note: Do not round intermediate calculations. Input the answer as a positive value. Round your final answer to 2 decimal places. Net annual cost b. Interest earnings of 5 percent with a $500 minimum balance; average monthly balance, $600; monthly service charge of $18 for falling below the minimum balance, which occurs three times a year (no interest earned in these months). Note: Do not round intermediate calculations. Input the answer as a positive value. Round your final answer to 2 decimal places. Net annual cost
Problem 5-10 Comparing Costs of Checking Accounts [LO5-5] What would be the net annual cost of the following checking accounts? a. Monthly fee, $2.40; processing fee, $0.20 cents per check; checks written, an average of 25 a month. Note: Do not round intermediate calculations. Input the answer as a positive value. Round your final answer to 2 decimal places. Net annual cost b. Interest earnings of 5 percent with a $500 minimum balance; average monthly balance, $600; monthly service charge of $18 for falling below the minimum balance, which occurs three times a year (no interest earned in these months). Note: Do not round intermediate calculations. Input the answer as a positive value. Round your final answer to 2 decimal places. Net annual cost
Fundamentals Of Financial Management, Concise Edition (mindtap Course List)
10th Edition
ISBN:9781337902571
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter5: Time Value Of Money
Section: Chapter Questions
Problem 27P
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