Suppose That on Monday Morning You Have $5000 in Cash

question 113

Essay

Suppose that on Monday morning you have $5000 in cash on hand. For the following seven days, the following cash requirements must be met: Monday, $6,000; Tuesday, $7,000; Wednesday, $10,000; Thursday, $3,000; Friday, $8,000; Saturday, $3,000; Sunday, $4,000. At the beginning of each day, you must decide how much money (if any) to withdraw from the bank. It costs $8 to make a withdrawal of any size. You believe that the opportunity cost of having $1 of cash on hand for a year is $0.25. Assume that opportunity costs are incurred on each day's ending balance. Determine how much money you should withdraw from the bank during each of the next 7 days.

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Definitions:

Arrived

To have reached a destination or a particular point in time.

Morning

The period of time from sunrise until noon; the early part of the day.

Punctuated Correctly

Written or arranged properly using punctuation marks like commas, periods, and question marks to clarify meaning.

Class

A category or grouping of items sharing common characteristics or properties, often used in the context of education, taxonomy, or programming.