Week 5 FIN 610

I have attached the homeowrk to be completed. I just need the Problems 1 and 2 completed. Shouldn’t take long to complete. 

Problem

1

)

1

20

Module Five Homework Assignment

Student’s Name:

Problem 1 (from Chapter 1

0

A financial manager is attempting to decide whether to use EDT or wire transfer but must first calculate the minimum balance to transfer. Using the data provided below, calculate the TBAL.

Numbers of days saved

Annual investment opportunity cost rate, k

10%

Bank’s earnings credit rate, ecr

8%

Required reserve rate, rr

12%

Wire transfer cost

$

20

EDT cost

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0.25

1[.10-.08*(1-.12)]/365

1[.2x.88]/365

Problem 2

Module Five Homework Assignment

Numbers of days saved 1

Annual investment opportunity cost rate, k

0

Required reserve rate, rr

Wire transfer cost 20
EDT cost 0.25

Problem 2 (from Chapter 10)

Now, let’s assume that the bank’s ECR = 0 in Problem 1.Using the data in Problem 1 (listed below) recalculate the TBAL. Using the ECRof 0 will result in the break-even balance for TBAL.

0.1

Bank’s earnings credit rate, ecr

0.12

Problem 3

Module Five Homework Assignment

Problem 3 (from Chapter 10)

What factors determine how frequently transfers should be made from a deposit account to a concentration account? Find a minimum of one peered reviewed article form a financial journal in the SNHU Online Library to support your answer. Your response should be between 100-150 words in length. Remember to list your references in the reference section of this worksheet and properly cite them in accordance to APA citation requirements.

References

References