Problem 5-10 Comparing Costs of Checking Accounts What would be the net annual cost of the following checking accounts? (a) Monthly fee, $3.90; processing fee, $0.25 cents per check; checks written, an average of 25 a month. (Do not round intermediate calculations. Input the answer as a positive value. Round your answer to 2 decimal places.) Net annual cost (b) Interest earnings of 4 percent with a $500 minimum balance; average monthly balance, $800; monthly service charge of $15 for falling below the minimum balance, which occurs three times a year (no interest earned in these months). (Do not round intermediate calculations. Input the answer as a positive value. Round your answer to 2 decimal places.)
Problem 5-10 Comparing Costs of Checking Accounts What would be the net annual cost of the following checking accounts? (a) Monthly fee, $3.90; processing fee, $0.25 cents per check; checks written, an average of 25 a month. (Do not round intermediate calculations. Input the answer as a positive value. Round your answer to 2 decimal places.) Net annual cost (b) Interest earnings of 4 percent with a $500 minimum balance; average monthly balance, $800; monthly service charge of $15 for falling below the minimum balance, which occurs three times a year (no interest earned in these months). (Do not round intermediate calculations. Input the answer as a positive value. Round your answer to 2 decimal places.)
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter4: Managing Your Cash And Savings
Section: Chapter Questions
Problem 5FPE: Calculating the net costs of checking accounts. Determine the annual net cost of these checking...
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Pls help in both parts and i don't need handwritten
Transcribed Image Text:Problem 5-10 Comparing Costs of Checking Accounts
What would be the net annual cost of the following checking accounts?
(a) Monthly fee, $3.90; processing fee, $0.25 cents per check; checks written, an average of 25 a
month. (Do not round intermediate calculations. Input the answer as a positive value. Round your
answer to 2 decimal places.)
Net annual cost
(b) Interest earnings of 4 percent with a $500 minimum balance; average monthly balance, $800;
monthly service charge of $15 for falling below the minimum balance, which occurs three times a year
(no interest earned in these months). (Do not round intermediate calculations. Input the answer as a
positive value. Round your answer to 2 decimal places.)
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