Amazon's CFO Is Considering the Fees Charged by Two Banks

Amazon's CFO is considering the fees charged by two banks in trying to determine which is best for her firm.First American charges a flat $0.11 per payment and First Western requires a minimum compensating balance of $500,000 plus $0.05 per payment.If Amazon's cost of funds is 8.50%, and the expected number of payments per year is 900,000, which bank should be chosen?

A) FW, savings = $54,000
B) FA, savings = $23,000
C) FW, savings = $11,500
D) FW, savings = $18,500