18-124 Suppose the minimum balance was lowered from $500 to $300 and she now pays a service charge of 5 cents per check.Note that it costs the bank 10 cents to process each check.What is her annual gross interest return?

Question

Quizplus · Accepted Answer

The annual gross interest return is calculated by considering the interest earned on the minimum balance and subtracting the cost of processing checks. With a lower minimum balance of $300, the interest earned is reduced, and the service charge per check affects the total return.

18-124 Suppose the Minimum Balance Was Lowered from $500 to $300