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Suppose you have weekly cash expenses of $150. The bank charges $0.25 everytime cash is withdrawn. The bank pays 1.5% interest per year. Given thisi
Suppose you have weekly cash expenses of $150. The bank charges $0.25 everytime cash is withdrawn. The bank pays 1.5% interest per year. Given thisi nformation, what is the optimal withdrawal size? What is the average amount of cash on hand? How often should you withdraw funds? Show your calculations.
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