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You want to open a checking account with a $500 deposit. You estimate you will write 16 checks a month and use an ATM from other banks about twice a week. Bank A charges $1.40 per check if you drop under a minimum balance of $100, but you can use another bank’s ATM without a fee. Bank B has free checking but charges $1.40 each time you use another bank’s ATM. Calculate the difference in fees between the two banks over the course of a year for the following scenarios.
a. your balance slips below $100 every month
b. Your balance slips below $100 every other month, but you are now able to pay a bill online each month, dropping the number of checks you have to write to fifteen monthly. You also find you are only using the other bank’s ATM about once a week.
c. You maintain a minimum balance of $500, write nine checks a week, and use another bank’s ATM only about once a month.
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- A particular credit card calculates interest using the unpaid balance method. The monthly interest rate is 1.57% on the unpaid balance on the first day of the billing period minus any payment. At the beginning of the month you owed $1352. You made a payment of $300. a) During the month you bought theatre tickets for $37, went out to eat for $80, and bought a television for $350. What's your new balance (include what your balance was after your payment + new purchases + finance charges)?arrow_forward1. You want to open a checking account with a $500 deposit. You estimate you will write 10 checks a month and use an ATM from other banks about twice a week. Bank A charges $1 per check if you drop under a minimum balance of $100, but you can use another bank's ATM without a fee. Bank B has free checking but charges $1 each time you use another bank's ATM. Calculate the difference in fees between the two banks over the course of one year for the following scenarios: a. Your balance slips below $100 every other month. b. Your balance slips below $100 every other month, but you are now able to pay a bill online each month, dropping the number of checks you have to write to nine monthly. You also find you are only using the other bank's ATM about once a week. c. You maintain a minimum balance of $500, write three checks a week, and use another bank's ATM only about once a month.arrow_forwardplease show me how to enter this into a financial calculator, i cannot use formaulas for these problems.arrow_forward
- And the total interest someone will pay for the following scenariosarrow_forwardHow to do this question?arrow_forwardAs a jewelry store manager, you want to offer credit, with interest on outstanding balances paid monthly. To carry receivables, you must borrow funds from your bank at a nominal 10%, monthly compounding. To offset your overhead, you want to charge your customers an EAR (or EFF%) that is 3% more than the bank is charging you. What APR rate should you charge your customers? Do not round intermediate calculations. Round your answer to two decimal places. %arrow_forward
- If you are trying to build credit by using a credit card, each time you make a purchase with the credit card, deduct that amount from your checking account. That way, when your credit card bill is due, you will have enough to pay the credit card off in full. Kathy Lehner is going to start doing this. She plans on paying her credit card bill in full this month. How much does she owe with a 9% APR and the following transactions? (Round your answer to the nearest cent.) 31-day billing cycle 10/1 Previous balance 10/3 Credit 10/12 Charge: King Soopers 10/15 Payment 10/25 Charge: Delta 10/30 Charge: Holiday Fun Amount owed $84 cr. $143 $260 cr. $316 $56 Check my $ 1,159arrow_forwardIf you are attempting these questions ...then solve for both imagesarrow_forwardSuppose that before ATMs and credit cards, a person goes to the bank once at the beginning of each four-day period and withdraws from her savings account all the money she needs for four days. Assume that she spends $100 per day. Calculate the amount of money this person withdraws each time she goes to the bank.arrow_forward
- Essentials Of InvestmentsFinanceISBN:9781260013924Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.Publisher:Mcgraw-hill Education,
- Foundations Of FinanceFinanceISBN:9780134897264Author:KEOWN, Arthur J., Martin, John D., PETTY, J. WilliamPublisher:Pearson,Fundamentals of Financial Management (MindTap Cou...FinanceISBN:9781337395250Author:Eugene F. Brigham, Joel F. HoustonPublisher:Cengage LearningCorporate Finance (The Mcgraw-hill/Irwin Series i...FinanceISBN:9780077861759Author:Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan ProfessorPublisher:McGraw-Hill Education
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