Question
Local bank has a local subsidiary, which requires $75,000 cash every month. It uses $safe armored trucks service for cash delivery. Service company charges $480
Local bank has a local subsidiary, which requires $75,000 cash every month. It uses $safe armored trucks service for cash delivery. Service company charges $480 for each delivery.
In order to send cash to its subsidiary, the bank has to liquidate part of its securities portfolio which generates 15% annual return.
How many armored truck service trips PER YEAR should the bank order?
(Hint: The annual rate of return in this question is given as 12 * actual monthly rate of return. You can round off to the nearest whole number, for example if your answer is 17.62, you can answer 18.)
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