Question
UMUC bank has a local subsidiary, which requires $75,000 cash every week. It uses $safe armored trucks service for cash delivery. Service company charges $440
UMUC bank has a local subsidiary, which requires $75,000 cash every week. It uses $safe armored trucks service for cash delivery. Service company charges $440 for each delivery.
In order to send cash to its subsidiary, the bank has to liquidate part of its securities portfolio which generates 15% annual return.
How many armored truck service trips PER YEAR should the bank order?
(Hint: The annual rate of return in this question is given as 12 * actual monthly rate of return. You can round off to the nearest whole number, for example if your answer is 17.62, you can answer 18.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started