The net annual cost of the checking accounts

Assignment Help Financial Management

Reference no: EM131312336

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

a. Monthly fee, $4.25; processing fee, 50 cents per check; assume checks written average to 16 per month. (Round your answer to 2 decimal places.)

Net annual cost $

b. Interest earnings of 2 percent with a $550 minimum balance; average monthly balance, $750; monthly service charge of $14 for falling below the minimum balance, which occurs five times a year (no interest earned in these months). (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Net annual cost $

Reference no: EM131312336

Questions Cloud

What is the net profit for each of the ending spot rates : The British Pound currently trades for $1.30/pound. You initiated a long straddle on the British pound, using a call option with an excercise price of $1.30 and a premium of $.015 and a put option with the same maturity and excercise price and a prem..

Calculated growth rate is expected to continue : You buy a share of The Ludwig Corporation stock for $22.00. You expect it to pay dividends of $1.01, $1.17, and $1.3553 in Years 1, 2, and 3, respectively, and you expect to sell it at a price of $27.62 at the end of 3 years. Calculate the growth rat..

Value of share of common stock depends on the cash flows : The value of a share of common stock depends on the cash flows it is expected to provide, and those flows consist of the dividends the investor receives each year while holding the stock and the price the investor receives when the stock is sold. Thi..

Thinking of buying a stock priced : You are thinking of buying a stock priced at $100 per share. Assume that the risk-free rate is about 4.5% and the market risk premium is 6%. If you think that stock will rise to $117 per share by the end of the year, at which time it will pay a $1 di..

The net annual cost of the checking accounts : What would be the net annual cost of the following checking accounts? Monthly fee, $4.25; processing fee, 50 cents per check; assume checks written average to 16 per month.

What is the firms cost of equity capital : A firm has a market value of equity of $30,000. It borrows $7500 at a cost of 8%. If the firm’s assets have a cost of capital of 15%, what is the firm's cost of equity capital? Assume no taxes.

Identical assets that generate identical cash flows : Consider two firms, Firm X and Firm Y, that have identical assets that generate identical cash flows. Firm Y is an all-equity firm, with 1 million shares outstanding that trade for a price of $24 per share. Firm X has 2 million shares outstanding and..

How would a bank have a maturity imbalance problem : How would a bank have a maturity imbalance problem. What is the formula for delta of the option as a function of (U,D,R, Vu, Vd)? How much money will you have in 16 years if you invest $10,000 in a savings account that earns an annual interest rate o..

The signing bonus is part of the contract value : An All-Pro defensive lineman is in contract negotiations. The team has offered the following annual salary structure with a signing bonus of $6,300,000 at time equals 0. All salaries are to be paid in a lump sum. The player has asked you as his agent..

User Account

All Pages