|Hillsboro bank||First bank||South trust Bank||Sun Coast Bank|
|Using Other bank Atm:||$ 4each||$2.50 each||$2. 50 each||$3.50 each|
|Check-writing charges||$1.50 each||$1.50 each||$2.50 each||$2 each|
|$5.00 will be charged for not maintaining the minimum balance.|
- Using the chart above. You want to open a checking account with a $100 deposit. You believe that that you will write 10 checks per month and use other bank’s ATMs 3 times a month. You will be able to maintain a minimum balance of $25 per month. Which bank should you choose? Show work.
- You have an account at Bank A. Your last balance statement shows an ending balance of $150. This month you deposit $850 in your account and withdrew $250. The you write 6 checks, two of which clears. The two checks that have cleared totals $780. The three remaining checks total $200. You pay a $7 fee to your bank that month. What is the adjusted bank balance (accounting for the unclear checks as well)? Show work.
- You have $2500 to invest in a Certificate of Deposit. The local bank offers 3% for a 12 month FDIC insured CD. A nonfinancial institution offers 5% on a 12 month CD. What is the risk premium (in percentage) and what does it mean? Show work.