AS a service station owner, has tracked his high, low and average balances in his account. It is required to determine which type of account is better for him it can be seen that average balance account is better for him. How monthly fee can be avoided has been advised to him. Characters in the case : AS Adequate information: AS a service station owner considering changing his checking account, it is required to determine the type of checking account is suitable from the available options. To determine: The type of account is better for A to avoid or minimize fee on balance requirement of checking account. Introduction: Checking account balance requirements: Most interest-earning accounts have a minimum balance requirement that if not met, will result in the assessment of a monthly fee of around $10 to $25 a month and forfeiture of any interest earned for the month. Balance requirements are either based on minimum balance or average balance requirement. With a minimum balance account, customer must maintain a minimum balance which will be around $500 to $1,000 in account throughout a specified period usually a month or a quarter. With an average balance account, if the average daily balance drops below a pre stated level usually between $800-$1,200 a service fee is applicable.

Question

Want to see the full answer?

Answer 1

Question

Chapter 5, Problem 7FPC

a

Summary Introduction

Case summary: AS a service station owner, has tracked his high, low and average balances in his account. It is required to determine which type of account is better for him it can be seen that average balance account is better for him. How monthly fee can be avoided has been advised to him.

Characters in the case : AS

Adequate information: AS a service station owner considering changing his checking account, it is required to determine the type of checking account is suitable from the available options.

To determine: The type of account is better for A to avoid or minimize fee on balance requirement of checking account.

Introduction:

Checking account balance requirements:Most interest-earning accounts have a minimum balance requirement that if not met, will result in the assessment of a monthly fee of around $10 to $25 a month and forfeiture of any interest earned for the month. Balance requirements are either based on minimum balance or average balance requirement. With a minimum balance account, customer must maintain a minimum balance which will be around $500 to $1,000 in account throughout a specified period usually a month or a quarter. With an average balance account, if the average daily balance drops below a pre stated level usually between $800-$1,200 a service fee is applicable.

b

Summary Introduction

Case summary: AS a service station owner, has tracked his high, low and average balances in his account. It is required to determine which type of account is better for him it can be seen that average balance account is better for him. How monthly fee can be avoided has been advised to him.

Characters in the case : AS

Adequate information: AS a service station owner considering changing his checking account, it is required to determine the type of checking account is suitable from the available options.

To determine: The way A could work to avoid monthly fee of his account.

Checking account balance requirements: Most interest-earning accounts have a minimum balance requirement that if not met, will result in the assessment of a monthly fee of around $10 to $25 a month and forfeiture of any interest earned for the month. Balance requirements are either based on minimum balance or average balance requirement. With a minimum balance account, customer must maintain a minimum balance which will be around $500 to $1,000 in account throughout a specified period usually a month or a quarter. With an average balance account, if the average daily balance drops below a pre stated level usually between $800 to $1,200 a service fee is applicable.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Would Qualifying an Indorsement Be Ethical? Suppose you have taken a promissory note for $3,500 payable in 12 months with interest at 10 percent as payment for some carpentry work you did for a friend. You have some reason to believe the maker of the note is in financial difficulty and may not be able to pay the note when it is due. You discuss with an elderly neighbor the possibility of her buying the note from you as an investment, and she agrees to buy it from you for $3,000. Would it be ethical for you to indorse the note with a qualified indorsement ("without recourse")?

Kwaku Addo earns $4200 per month take-home pay and has the funds directly deposited in his checking account. He spends only about $3500 per month, and the excess funds have been building up in his account for about one year. (a) What other types of accounts are available to Kwaku? (b) How might he manage his accounts to earn as much interest as possible and keep his money safe? (c) How might he use electronic money management to accomplish these tasks?

You are looking for a bank in which to open a checking account for your new part-time business. You estimate that in the first year, you will be writing 30 checks per month and will make three debit transactions per month. Your average daily balance is estimated to be $900 for the first six months and $2,400 for the next six months. Use the following information to solve the problem. Bank Monthly Fees and Conditions Bank 1 $16.00 with $1,000 min. daily balance-or-$25.00 under $1,000 min. daily balance Bank 2 $4.50 plus $0.40 per check over 10 checks monthly$1.00 per debit transaction Bank 3 $5 plus $0.25 per check$2.00 per debit transaction Bank 4 $8 plus $0.15 per check$1.50 per debit transaction (a) Calculate the cost (in $) of doing business with each bank for a year. Bank 1 Bank 2 Bank 3 Bank 4 (b) Which bank should you choose for your checking account? Bank 1 Bank 2 Bank 3 Bank 4

Answer 2

Question

Chapter 5, Problem 7FPC

a

Summary Introduction

Case summary: AS a service station owner, has tracked his high, low and average balances in his account. It is required to determine which type of account is better for him it can be seen that average balance account is better for him. How monthly fee can be avoided has been advised to him.

Characters in the case : AS

Adequate information: AS a service station owner considering changing his checking account, it is required to determine the type of checking account is suitable from the available options.

To determine: The type of account is better for A to avoid or minimize fee on balance requirement of checking account.

Introduction:

Checking account balance requirements:Most interest-earning accounts have a minimum balance requirement that if not met, will result in the assessment of a monthly fee of around $10 to $25 a month and forfeiture of any interest earned for the month. Balance requirements are either based on minimum balance or average balance requirement. With a minimum balance account, customer must maintain a minimum balance which will be around $500 to $1,000 in account throughout a specified period usually a month or a quarter. With an average balance account, if the average daily balance drops below a pre stated level usually between $800-$1,200 a service fee is applicable.

b

Summary Introduction

Case summary: AS a service station owner, has tracked his high, low and average balances in his account. It is required to determine which type of account is better for him it can be seen that average balance account is better for him. How monthly fee can be avoided has been advised to him.

Characters in the case : AS

Adequate information: AS a service station owner considering changing his checking account, it is required to determine the type of checking account is suitable from the available options.

To determine: The way A could work to avoid monthly fee of his account.

Checking account balance requirements: Most interest-earning accounts have a minimum balance requirement that if not met, will result in the assessment of a monthly fee of around $10 to $25 a month and forfeiture of any interest earned for the month. Balance requirements are either based on minimum balance or average balance requirement. With a minimum balance account, customer must maintain a minimum balance which will be around $500 to $1,000 in account throughout a specified period usually a month or a quarter. With an average balance account, if the average daily balance drops below a pre stated level usually between $800 to $1,200 a service fee is applicable.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 5, Problem 7FPC

a

Summary Introduction

Case summary: AS a service station owner, has tracked his high, low and average balances in his account. It is required to determine which type of account is better for him it can be seen that average balance account is better for him. How monthly fee can be avoided has been advised to him.

Characters in the case : AS

Adequate information: AS a service station owner considering changing his checking account, it is required to determine the type of checking account is suitable from the available options.

To determine: The type of account is better for A to avoid or minimize fee on balance requirement of checking account.

Introduction:

Checking account balance requirements:Most interest-earning accounts have a minimum balance requirement that if not met, will result in the assessment of a monthly fee of around $10 to $25 a month and forfeiture of any interest earned for the month. Balance requirements are either based on minimum balance or average balance requirement. With a minimum balance account, customer must maintain a minimum balance which will be around $500 to $1,000 in account throughout a specified period usually a month or a quarter. With an average balance account, if the average daily balance drops below a pre stated level usually between $800-$1,200 a service fee is applicable.

b

Summary Introduction

Case summary: AS a service station owner, has tracked his high, low and average balances in his account. It is required to determine which type of account is better for him it can be seen that average balance account is better for him. How monthly fee can be avoided has been advised to him.

Characters in the case : AS

Adequate information: AS a service station owner considering changing his checking account, it is required to determine the type of checking account is suitable from the available options.

To determine: The way A could work to avoid monthly fee of his account.

Checking account balance requirements: Most interest-earning accounts have a minimum balance requirement that if not met, will result in the assessment of a monthly fee of around $10 to $25 a month and forfeiture of any interest earned for the month. Balance requirements are either based on minimum balance or average balance requirement. With a minimum balance account, customer must maintain a minimum balance which will be around $500 to $1,000 in account throughout a specified period usually a month or a quarter. With an average balance account, if the average daily balance drops below a pre stated level usually between $800 to $1,200 a service fee is applicable.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 5, Problem 7FPC

a

Summary Introduction

Case summary: AS a service station owner, has tracked his high, low and average balances in his account. It is required to determine which type of account is better for him it can be seen that average balance account is better for him. How monthly fee can be avoided has been advised to him.

Characters in the case : AS

Adequate information: AS a service station owner considering changing his checking account, it is required to determine the type of checking account is suitable from the available options.

To determine: The type of account is better for A to avoid or minimize fee on balance requirement of checking account.

Introduction:

Checking account balance requirements:Most interest-earning accounts have a minimum balance requirement that if not met, will result in the assessment of a monthly fee of around $10 to $25 a month and forfeiture of any interest earned for the month. Balance requirements are either based on minimum balance or average balance requirement. With a minimum balance account, customer must maintain a minimum balance which will be around $500 to $1,000 in account throughout a specified period usually a month or a quarter. With an average balance account, if the average daily balance drops below a pre stated level usually between $800-$1,200 a service fee is applicable.

b

Summary Introduction

Case summary: AS a service station owner, has tracked his high, low and average balances in his account. It is required to determine which type of account is better for him it can be seen that average balance account is better for him. How monthly fee can be avoided has been advised to him.

Characters in the case : AS

Adequate information: AS a service station owner considering changing his checking account, it is required to determine the type of checking account is suitable from the available options.

To determine: The way A could work to avoid monthly fee of his account.

Checking account balance requirements: Most interest-earning accounts have a minimum balance requirement that if not met, will result in the assessment of a monthly fee of around $10 to $25 a month and forfeiture of any interest earned for the month. Balance requirements are either based on minimum balance or average balance requirement. With a minimum balance account, customer must maintain a minimum balance which will be around $500 to $1,000 in account throughout a specified period usually a month or a quarter. With an average balance account, if the average daily balance drops below a pre stated level usually between $800 to $1,200 a service fee is applicable.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 5, Problem 7FPC

a

Summary Introduction

Case summary: AS a service station owner, has tracked his high, low and average balances in his account. It is required to determine which type of account is better for him it can be seen that average balance account is better for him. How monthly fee can be avoided has been advised to him.

Characters in the case : AS

Adequate information: AS a service station owner considering changing his checking account, it is required to determine the type of checking account is suitable from the available options.

To determine: The type of account is better for A to avoid or minimize fee on balance requirement of checking account.

Introduction:

Checking account balance requirements:Most interest-earning accounts have a minimum balance requirement that if not met, will result in the assessment of a monthly fee of around $10 to $25 a month and forfeiture of any interest earned for the month. Balance requirements are either based on minimum balance or average balance requirement. With a minimum balance account, customer must maintain a minimum balance which will be around $500 to $1,000 in account throughout a specified period usually a month or a quarter. With an average balance account, if the average daily balance drops below a pre stated level usually between $800-$1,200 a service fee is applicable.

b

Summary Introduction

Case summary: AS a service station owner, has tracked his high, low and average balances in his account. It is required to determine which type of account is better for him it can be seen that average balance account is better for him. How monthly fee can be avoided has been advised to him.

Characters in the case : AS

Adequate information: AS a service station owner considering changing his checking account, it is required to determine the type of checking account is suitable from the available options.

To determine: The way A could work to avoid monthly fee of his account.

Checking account balance requirements: Most interest-earning accounts have a minimum balance requirement that if not met, will result in the assessment of a monthly fee of around $10 to $25 a month and forfeiture of any interest earned for the month. Balance requirements are either based on minimum balance or average balance requirement. With a minimum balance account, customer must maintain a minimum balance which will be around $500 to $1,000 in account throughout a specified period usually a month or a quarter. With an average balance account, if the average daily balance drops below a pre stated level usually between $800 to $1,200 a service fee is applicable.

Answer 6

Chapter 5, Problem 7FPC

a

Summary Introduction

Case summary: AS a service station owner, has tracked his high, low and average balances in his account. It is required to determine which type of account is better for him it can be seen that average balance account is better for him. How monthly fee can be avoided has been advised to him.

Characters in the case : AS

Adequate information: AS a service station owner considering changing his checking account, it is required to determine the type of checking account is suitable from the available options.

To determine: The type of account is better for A to avoid or minimize fee on balance requirement of checking account.

Introduction:

Checking account balance requirements:Most interest-earning accounts have a minimum balance requirement that if not met, will result in the assessment of a monthly fee of around $10 to $25 a month and forfeiture of any interest earned for the month. Balance requirements are either based on minimum balance or average balance requirement. With a minimum balance account, customer must maintain a minimum balance which will be around $500 to $1,000 in account throughout a specified period usually a month or a quarter. With an average balance account, if the average daily balance drops below a pre stated level usually between $800-$1,200 a service fee is applicable.

Answer 7

Chapter 5, Problem 7FPC

a

Summary Introduction

Case summary: AS a service station owner, has tracked his high, low and average balances in his account. It is required to determine which type of account is better for him it can be seen that average balance account is better for him. How monthly fee can be avoided has been advised to him.

Characters in the case : AS

Adequate information: AS a service station owner considering changing his checking account, it is required to determine the type of checking account is suitable from the available options.

To determine: The type of account is better for A to avoid or minimize fee on balance requirement of checking account.

Introduction:

Checking account balance requirements:Most interest-earning accounts have a minimum balance requirement that if not met, will result in the assessment of a monthly fee of around $10 to $25 a month and forfeiture of any interest earned for the month. Balance requirements are either based on minimum balance or average balance requirement. With a minimum balance account, customer must maintain a minimum balance which will be around $500 to $1,000 in account throughout a specified period usually a month or a quarter. With an average balance account, if the average daily balance drops below a pre stated level usually between $800-$1,200 a service fee is applicable.

Answer 8

b

Summary Introduction

Case summary: AS a service station owner, has tracked his high, low and average balances in his account. It is required to determine which type of account is better for him it can be seen that average balance account is better for him. How monthly fee can be avoided has been advised to him.

Characters in the case : AS

Adequate information: AS a service station owner considering changing his checking account, it is required to determine the type of checking account is suitable from the available options.

To determine: The way A could work to avoid monthly fee of his account.

Checking account balance requirements: Most interest-earning accounts have a minimum balance requirement that if not met, will result in the assessment of a monthly fee of around $10 to $25 a month and forfeiture of any interest earned for the month. Balance requirements are either based on minimum balance or average balance requirement. With a minimum balance account, customer must maintain a minimum balance which will be around $500 to $1,000 in account throughout a specified period usually a month or a quarter. With an average balance account, if the average daily balance drops below a pre stated level usually between $800 to $1,200 a service fee is applicable.

Answer 9

b

Summary Introduction

Case summary: AS a service station owner, has tracked his high, low and average balances in his account. It is required to determine which type of account is better for him it can be seen that average balance account is better for him. How monthly fee can be avoided has been advised to him.

Characters in the case : AS

Adequate information: AS a service station owner considering changing his checking account, it is required to determine the type of checking account is suitable from the available options.

To determine: The way A could work to avoid monthly fee of his account.

Checking account balance requirements: Most interest-earning accounts have a minimum balance requirement that if not met, will result in the assessment of a monthly fee of around $10 to $25 a month and forfeiture of any interest earned for the month. Balance requirements are either based on minimum balance or average balance requirement. With a minimum balance account, customer must maintain a minimum balance which will be around $500 to $1,000 in account throughout a specified period usually a month or a quarter. With an average balance account, if the average daily balance drops below a pre stated level usually between $800 to $1,200 a service fee is applicable.

Answer 10

Expert Solution & Answer

Answer 11

Expert Solution & Answer

Answer 12

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 13

Ch. 5.1 - Prob. 1CC Ch. 5.1 - Explain the circumstances when it would be...Ch. 5.1 - Prob. 3CC Ch. 5.1 - Summarize your insurance protections when you have...Ch. 5.2 - Explain why opening a checking account and a money...Ch. 5.2 - Prob. 2CC Ch. 5.2 - Prob. 3CC Ch. 5.2 - Prob. 4CC Ch. 5.3 - Prob. 1CC Ch. 5.3 - Prob. 2CC

Solution Summary: The author explains how a service station owner determines which type of checking account is better for him to minimize fees on balance requirements.

Concept explainers

Videos

Want to see the full answer?

Chapter 5 Solutions