CH5.4. Checking Account Balance. Andy has an account at South Central Savings and Loan. He does not track his checking account balance on a checkbook register. Yesterday evening, he placed 2 checks in the mail, one for $189.66 and another for $237.94. Andy accesses his account online and finds that his balance is $538.40, and all the checks he has written except for the 2 checks from yesterday have cleared. Based on his balance, Andy writes a check for a new stereo for $225.00. Andy does not intend to make a deposit in the near future. What are the consequences of his actions?

CH5.5. Adjusted Bank Balance. Mari is balancing her checkbook. Mari received her bank statement in the mail and she needs to reconcile her bank statement to her check book register. Her ending balance on the bank statement shows $1,275.59. Since then, she deposited $500 in her account and withdrew $239.00 in cash. Mari also wrote 5 checks, 2 check totaling $143.00 have cleared the bank. The 3 remaining checks total $209.09. Mary meets the banks requirements thus avoids paying bank fees.

CH5.5.a. What is the ending bank balance on Mari's bank statement?

CH5.5.b. What is Mari's adjusted bank balance?

CH5.6. Selecting a CD investment. Avery has $3,000 to invest in a certificate of deposit. The local bank offers Avery 3.25% on a 12-month FDIC-insured CD while a nonfinancial institution offers 6.25% on a 12-month CD. CH5.6.a. What is the risk premium between the offers?

What other criteria must Avery consider when deciding on whether or not she should invest in a CD, stock market, or annuity program?