Question
1. Compute the earnings for the year, for a $18,000 savings account that earns 1.6 percent compounded (a) annually, (b) quarterly, (c) monthly, and (d)
1. Compute the earnings for the year, for a $18,000 savings account that earns 1.6 percent compounded (a) annually, (b) quarterly, (c) monthly, and (d) daily. (Use 365 days a year. Do not round your intermediate calculations and time value factors. Round your final answers to 2 decimal places. Omit the "$" sign in your response.)
(a) Annually $
(b) Quarterly $
(c) Monthly $
(d) Daily $
2. What is the net annual cost of the following chequing accounts? a. Monthly fee, $2.60; processing fee, 55 cents per cheque; cheques written, an average of 2 a month; $1.10 per debit transaction over the 20 debit transactions per month that are free with an average of 60 per month made. (Round your final answer to 2 decimal places. Omit the "$" sign in your response.) Annual cost $ b. Interest earnings of 6 percent with a $500 minimum balance; average monthly balance, $600; monthly service charge of $15 for falling below the minimum balance, which occurs three times a year (no interest earned in these months). (Round your final answer to 2 decimal places. Omit the "$" sign in your response.) Net cost $
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started