What is the risk premium

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1. Randy a student has 558 to deposit in a new checking account but Randy knows he will not be able to maintain a minimum balance. He will not use an atm card, but will write a large number of checks. Randy is trying to choose between the unlimited check writing offered by South trust and the low per check in fed offered by Sun coats. How many checks would Randy have to write each month for the account at south trust to be the better option ?

For the account at south Trust bank to be the better option, the number of checks Randy would need to write each month is ?

2. Casey has 4000 to invest in a certificate of deposit. Her local bank offers her 3.58% on a 12 month FDIC-insured CD and non financial institution offers her 4.24% on a 12 month CD What is the risk premium? what else miss Casey consider in choosing between the 2 cities the risk premium is ___?

Reference no: EM131859633

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