Question
Money in my savings account earns interest at 10% annual rate. Each time I go to the bank, I waste 15 minutes in line. My
Money in my savings account earns interest at 10% annual rate. Each time I go to the bank, I waste 15 minutes in line. My time is worth $60 per hour. For the next year, I need to withdraw $60,000 to pay my bills. a. Each time I go to the bank, how much money should I withdraw? b. How often should I go to the bank? c. If my need for cash increases, will I go to the bank more often or less often? d. If interest rates rise, will I go to the bank more often or less often? e. If the bank adds more tellers, will I go to the bank more often or less often?
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