Use the Following Information to Answer the Question

question 62

Multiple Choice

Use the following information to answer the question.A current deposit account requires a minimum balance of $500 if annual interest of 5% is to be earned monthly on its deposits.An account holder has maintained an average balance of $300 for the first nine months of the year and $800 for the last three months of the year.She has written an average of 20 cheques a month and is not charged for these services.However, it costs the bank $0.02 to process each cheque.The bank would like to limit the average return (both explicit and implicit) earned by the account holder to 5% per year.How much should it charge for processing each check to this account holder assuming that it will pay annual interest of 5% and minimum balances of $200 are maintained?

• A)1 cent per cheque
• B)2 cents per cheque
• C)3 cents per cheque
• D)4 cents per cheque

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Definitions:

Nutrient-poor

Describes soils or ecosystems that lack sufficient quantities of essential nutrients required for plant growth, resulting in limited vegetative productivity.

Broadleaf Trees

Trees characterized by broad, flat leaves that are shed annually, contrast to coniferous or needle-leaved trees.

Pollination

The transfer of pollen from the male part of a plant to the female part, enabling fertilization and the production of seeds.

Tropical Rain Forest

A dense, warm, and wet biome located near the equator, known for its immense biodiversity, complex ecosystem, and pivotal role in global climate regulation.