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Suppose that your weekly cash expenses are $100. Every time you withdraw money from the automated teller at your bank, you are charged $0.25. Your
| Suppose that your weekly cash expenses are $100. Every time you withdraw money from the automated teller at your bank, you are charged $0.25. Your bank account pays interest of 3% annually. |
| a. | How often should you withdraw funds from the bank? (Round your answer to 2 decimal places.) | ||||
| You should go to the bank about once every week(s). | |||||
| b. | What is the optimal-sized withdrawal? (Round your answer to the nearest whole dollar.) | ||||
| Optimal-sized withdrawal $ | |||||
| c. | What is your average amount of cash on hand? (Round your answer to the nearest whole dollar.) | ||||
| Average amount of cash on hand $ | |||||
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Entrepreneurship
Authors: Andrew Zacharakis, William D Bygrave
5th Edition
1119563097, 9781119563099
