Dupree Funds is considering the fees charges by two banks. First America charges a flat rate of $0.11 per payment, and First Western requires a minimum compensating balance of $500,000, plus $0.05 per payment. What is the number of payments per year where the costs of the two banks will be equal? Assume Dupree's costs of funds is 9%.

Question

Quizplus · Accepted Answer

The Answer of Dupree Funds is considering the fees charges by two banks. First America charges a flat rate of $0.11 per payment, and First Western requires a minimum compensating balance of $500,000, plus $0.05 per payment. What is the number of payments per year where the costs of the two banks will be equal? Assume Dupree's costs of funds is 9%.

Dupree Funds Is Considering the Fees Charges by Two Banks