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Suppose that your weekly cash expenses are $80. Every time you withdraw money from the automated teller at your bank, you are charged $0.2. Your
Suppose that your weekly cash expenses are $80. Every time you withdraw money from the automated teller at your bank, you are charged $0.2. Your bank account pays interest of 2% 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 $ Company X sells on a 1/29, net 53, basis. Customer Y buys goods with an invoice of $820. a. How much can Y deduct from the bill if it pays on day 29? (Round your answer to 1 decimal place.) Discount $ b. How many extra days of credit can Y receive if it passes up the cash discount? (Round your answer to the nearest whole.) Extra days of credit C. What is the effective annual rate of interest if Y pays on the due date rather than day 29? (Round your answer to 2 decimal places.) Effective annual rate of interest %
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