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What is the optimal-sized withdrawal

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Reference no: EM132965231

Suppose that your weekly cash expenses are $100. Every time you withdraw money from the automated teller at your bank, you are charged $0.2. Your bank account pays interest of 3% annually.

Problem 1: How often should you withdraw funds from the bank?

Problem 2: What is the optimal-sized withdrawal? (Round your answer to the nearest whole dollar.)

Problem 3: What is your average amount of cash on hand?

Reference no: EM132965231

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