Mr. Jones has been working with the same bank for 10 years. He is accustomed to paying higher-than-market interest. You believe he could move to another bank and reduce his interest rate to 8%. Explain what would be the impact on a) the budget as proposed, and b) and his request for a higher minimum cash balance?

I need to explain for a written report how this would effect impact the budget to go from a 12% interest rate to a 8% interest rate and and his request for a higher minimum cash balance?