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Suppose you have weekly cash expenses of $150. The bank charges $0.25 every time cash is withdrawn. The bank pays 1.5% interest per year. Given

Suppose you have weekly cash expenses of $150. The bank charges $0.25 every time cash is withdrawn.

The bank pays 1.5% interest per year. Given this information, what is the optimal withdrawal size? What

is the average amount of cash on hand? How often should you withdraw funds?

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