Bank A: seems most fitting since his total charges will not exceed $4.50 and he need not keep a minimum balanceBank B: not a good option unless Brad can maintain the minimum $300 balanceBank C: will cost him approximately $9.35 monthly, computed as (25 x $.35) + (3 x $.20)Bank D: not a good option unless Brad can maintain the $200 minimum balanceBloom's: ComprehensionDifficulty: MediumLearning Objective: 05-05 Compare the Costs and Benefits of Different Types of Payment AccountsTopic: Choosing a Checking Account 88.(p. 150-153)You are planning to purchase a house in five years and intend to save a fixed amount of money each month for a down payment. How will you invest your savings and what are important considerations in selecting an investment vehicle?
89.(p. 156)Josh earned $120 on $1500 invested in a high yield money market account. He is taxed at 28% of his earnings. What is the effective yield on his investment? Answers will varyFeedback: Josh earned 8% ($120/$1500) on his high yield money market account. After he pays taxes of 28% on the $120 he earned, his effective yield will be approximately 5.8%. ($120 x .72)/$1500 = $86.40/1500 = .0576Bloom's: ComprehensionDifficulty: MediumLearning Objective: 05-04 Identify Factors Used to Evaluate Different Savings PlansTopic: Effect of Taxes on Yield5-31
- Fall '16
- Financial services, Cheque