The city has expenditures of $18,000,000 per quarter but does not want to deposit $18,000,000 in its checking account at the beginning of the quarter then then simply draw on it as the quarter progresses. The financial manager recognizes that some of the $18,000,000 can be held in an interest bearing account that is accessible during the quarter. The bank pays 4% per year on that account. It also charges the city $144 per transfer when the city moves money from the interest bearing account to its checking account (which pays zero percent interest).

Q1: Use the information regarding the total expenditures, interest rate and bank charges to determine the size of transfer that will minimize the cost of cash management. That is, calculate the optimal amount to transfer. Refer to the lecture and the formula for C to get started. Round your answer to the nearest dollar but do not include the dollar sign in your answer.

Q2: Assume the city deposits all of the $18,000,000 in the interest bearing account on the first day of the quarter. How many times during the quarter must the city transfer funds from the interest bearing account into its checking account. Keep in mind that the first transfer to the checking account after depositing the $18 million in the interest bearing account is included in the number of transfers.

Q3: Use the information that is given and that you have calculated in the earlier questions to determine the cost of managing cash balances for the city. Again, do not include the dollar sign in your answer.

NEED ALL THREE PARTS ANSWERED TOGETHER 1 Question just 3 parts ! PLEASE LABEL Q1 ANSWER , Q2 ANSWER AND Q3 ANSWER AS FOLLOWS PLEASE.