Question
Suppose all your money is deposited in a savings account with an interest rate of 6% per year (about 0.5% per month). Every time you
Suppose all your money is deposited in a savings account with an interest rate of 6% per year (about 0.5% per month). Every time you withdraw money from your account, you incur a fixed charge of $30. On average, you use $50 cash each month.
How frequently would you withdraw money, and how much money would you withdraw each time?
Step by Step Solution
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There are 3 Steps involved in it
Step: 1
To minimize the overall cost of withdrawing moneyyou should withdraw as few times as possible while ...
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
