Solution-What monthly fee should charge a customer

What monthly fee should charge a customer

Assignment Help Management Theories

Reference no: EM131721667

Question: A bank determines from an analysis Of its cost-accounting figures that for each $500 minimum-balance checking account it sells, account procesing and other operating costs will aver-age $4.87 per month and overhead expenses will run an average of $1.21 per month. The bank hopes to achieve a profit margin over these particular costs of 10 percent of total monthly costs. What monthly fee should it charge a customer who opens one of these checking accounts?

Reference no: EM131721667

Questions Cloud

De-emphasizing regular and special transaction accounts : First State Bank of Pine is considering a change of marketing strategy in an effort to lower its cost of funding and to maximize profitability.

How much should an investor pay for the stock : If dividends are expected to grow at 5% in 2016, beta is 0.75, Treasury Bill rate is 6% and market risk premium is 5.5%.

Discuss implications of agency that apply in given situation : Discuss the implications of agency that apply in this situation, and describe one way the company may be able to cancel or return the order in question.

Discuss the importance of procurement risk management : Write a summary of this study and its findings. Analyze and discuss the importance of procurement risk management.

What monthly fee should charge a customer : A bank determines from an analysis Of its cost-accounting figures that for each $500 minimum-balance checking account it sells, account procesing.

What is the expected stock value 5 years : It's most recent dividend paid was $2.40 and it is expected to grow at a constant rate, g. If the required rate of return is 12%.

What is the present value of this coupon bond : Suppose the yield to maturity (that is, the discount rate) for the bond is 10%, what is the present value of this coupon bond?

Define the marginal cost of funds approach : To price deposits successfully, service providers must know their costs. How are these costs deter-mined using the historical average cost approach?

Describe the marginal cost of funds approach : How can the historical average cost and marginal cost of funds approaches be used to help select assets (such as loans) that a depository institution.

User Account

All Pages

What monthly fee should charge a customer

Reference no: EM131721667

Reference no: EM131721667

Questions Cloud

Reviews

Write a Review

Management Theories Questions & Answers

Learning in action

Change is the only constant

How do advertisers try to use group influence

Case study:saving sony

How the stock market works

Find the optimal production quantities

Describe the management process

Case study : bert''s bonsai and aquatic sport museum

Knowledge management techniques

Theory of transtheoretical model

Write a paper on historical trends of management

Theory of reasoned action

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT