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eoq model, Supply Chain Management

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#question Tom Rich and Joe Miser have an e-checking/savings account at the eKU bank. Both Tom and Joe had $5000 in their account at the start of the calendar year 2013. Both have projected cash usage of $50 per week at a constant rate. eKU bank charges a $0.75 ATM withdrawal fee for every ATM transaction, which is billed to the account at the end of the calendar year. The account also earns a 6% APY which is based on the average annual balance, and deposited in the account at the end of the year. For the purpose of simplifying your calculations, assume 50 weeks per year and no additional deposit to this account during 2013.

(a) Tom has a fat wallet and hence withdraws $500 whenever he runs out of cash, while Joe withdraws cash every Monday on his way to the student union. Who will have a higher account balance at the end of calendar year 2013?

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