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AJ's spends $327,800 a week to pay bills and maintains a lower cash balance limit of $50,000. The standard deviation of its disbursements is $36,900. The applicable interest rate is 3.48 percent and the fixed cost of transferring funds is $58. What is the optimal average cash balance based on the BAT model?
Bottom 20%
The bottom 20% typically refers to the lowest quintile in a distribution, such as income levels, often used to describe those with the lowest earnings.
Families
Groups of individuals related by blood, marriage, or adoption who live together and share economic, emotional, and social ties.
Income Inequality
The uneven allocation of income among individuals or households within an economic system.
Distribution Of Income
The way in which total income is shared amongst the population or different groups within a society.
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