An FI Offers a $2,500 Minimum Balance Chequing Account Paying

question 3

Multiple Choice

An FI offers a $2,500 minimum balance chequing account paying 4 percent annual interest, and there are no service charges as long as the customer maintains the minimum balance. The customer maintains a balance of $5,000, and averages 750 cheques per year. Each cheque has a processing cost to the FI of $0.15. What is the annual gross interest return on this account to the customer?

• A)$112.50.
• B)$100.00.
• C)$312.50.
• D)$137.50.
• E)$212.50.

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Definitions:

Jewish Child

A child belonging to the Jewish community, which may involve cultural, religious, and social aspects unique to the Jewish heritage and traditions.

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