Question: An FI offers a $2500 minimum balance investment savings account paying 4% annual interest, and there are no service charges as long as the customer

An FI offers a $2500 minimum balance investment savings account paying 4% annual interest, and there are no service charges as long as the customer maintains the minimum balance. The customer maintains a balance of $5000, and averages 750 cheques per year. Each cheque has a processing cost to the FI of $0.15. What is the annual gross interest return on this account to the customer?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

(a) An FI offers a $2500 minimum balance investment savings account paying 4% annual interest, and there are no service charges as long as the customer maintains the minimum balance. The customer...

An FI offers a $ 2 5 0 0 minimum balance investment savings account paying 4 per cent annual interest, and there are no service charges as long as the customer maintains the minimum balance. The...

H2SO4 (90%) Excess NH3 HO 300C A B c D Green NaClO3 25% Solution Yellow Yellow Yellow Separation and Cleaing NH4HCO3 Solution G Gas H2 700C F2 HF Dry F E 350C Dark Brown H2 Mg 1130C G X Gas

A bank offers a $2500 minimum balance investment savings account paying 4 per cent annual interest, and there are no service charges as long as the customer maintains the minimum balance. The...

An FI offers a $2,500 minimum balance NOW account paying 4 percent annual interest, and there are no service charges as long as the customer maintains the minimum balance. The customer maintains a...

A DI offers a $500 minimum balance NOW account paying 5.5 percent annual interest. The account has a service charge of $0.05 per check, and processing costs per check are $0.15. The customer...

Can you please show me formula tips for solving the attached. You place $25,000 in a savings account paying an annual compound interest of 8 percent for 3 years a What is the original balance worth...

Brad Kellogg maintains a monthly balance in his checking account of approximately $150, writes about 25 checks a month, and makes three deposits each month. How would Brad decide which one of the...

iodination is electrophilc aromatic substion reaction in which electrophile is Iodonium (I^+) , it will updatined by the reaction of sodium hypochlorite (NaOCl) with iodide ion (NaI), which is strong...

ABC Company had the following activities, allocated costs, and allocation bases: What is the cost per letter for the correspondence activity? A) $10.00 B) $30.50 C) $25.00 D) $0.75 Activities Account...

20. LO.8 In no more than five PowerPoint slides, prepare a presentation to your schools Accounting Alumni Club titled How the IRS Keeps Track of Tax Preparers. Include the application of the PTIN and...

A hula hoop and solid disc of equal radii are rolled, from rest and without slipping, down an incline plane. Which one will reach the bottom of the inclined plane first? Explain.

For each of the inventory items listed below, identify on which of the following statement(s) the item will appear: statement of cost of goods manufactured, income statement, or balance sheet. a. Raw...

Describe a budget. What is the purpose of preparing a budget? LO.1

What type of cost systems would you recommend to the management of each of the following types of manufacturing concerns. Why? a. Manufacturer of custom-designed mobile homes b. Tailor c. Company...