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What is ted optimal cash balance

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Problem 1: Assume that Ted's Bike Shop uses up cash at a rate of $140,000 per year. The interest rate is 6% and each sale of securities costs $10. What is Ted's optimal cash balance and how many times a year should she sell securities?

Option 1: $4830.46, 28.98 times

Option 2: $6831.30, 20.49 times

Option 3: $2,160.25, 64.81 times.

Option 4: $11,666.67, 12 times

Reference no: EM132600644

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