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Unformatted text preview: Checks written, an average of 22 a month. ANS. (22 checks 12 months $0.25) + ($3.75 12 months) = $111 annual cost 3. What would be the average tax rate for a person who paid taxes of $4,864.14 on a taxable income of $39,870? ANS. $4,864.14 / $39,870 x 100 = 12.2% 4. A payday loan company charges 4 percent interest for a twoweek period. What would be the annual interest rate from that company? ANS. 52 / 2 = 26 periods X .04 = 1.04 x 100 = 104% 5. What is the annual opportunity cost of a checking account that requires a $350 minimum balance to avoid service charges? Assume an interest rate of 6.5 percent. ANS. $350 x .065 = $22.75...
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This note was uploaded on 05/27/2011 for the course BUSN 380 taught by Professor Bloch during the Fall '10 term at DeVry NY.
 Fall '10
 Bloch
 Management, Interest

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