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Question
An FI offers a $2,500 minimum balance NOW 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 checks per year. Each check 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.
Answer
This answer is hidden. It contains 138 characters.
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