Bank accounts vary in respect to various charges and fees levied for services rendered. Critical questions to consider in choosing bank account should firstly review the bank policies. Minimum balance, which is the least amount, required at any time in the account should be considered in reference to the charge levied if the balance dips below the set amount. Service charges levied by the bank for provision of services. The amount varies with different banks both on a timely and amount basis. Charges levied with the use of ATM (automated teller machines). The charges to use of ATM services are also vital for consideration especially in context to the fee of using the bank ATM machines and using other banks ATM machines. Some banks also include a set number of transactions allowed for ATM services where an inclusive charge is levied in case the number of use exceeds the defined quota. Convenience is also important in choosing a bank account where aspects such as location and size of the bank benefit the account holder. Since am married, a joint account will suffice for meeting household bills. Joint accounts are co-owned hence stipulations dictated by the bank to terms of ownership are also important in choice of the bank.
Monthly fee=$5
Check processing =25 cents
19 checks per month
25 cents = $0.25
19×0.25=4.75
5+4.75=8.75
8.75×12=105
Annual cost = $105
Annual interest = 2.5% if exceed $750
$8 pm charge if below minimum balance
Average monthly balance =$815
Fail below $750 in 4 months
8 x 4 = $32 (fee charged)
Cost = $32
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Principle=$4000
Rate=4%
Time=5years
Future value =?
Interest=?
Future value factor = 1.217
4000 x 1.217 = $ 4868
Future value = $4868
Interest =F.V-principle
4868-4000=868
Interest = $868
Principle=$4000 pa
Interest =4%
Time=5years
Future value annuity=?
Future value annuity factor= 5.416
4000 x 5.416 = 21664
Future value annuity = $21664
Short-term investment methods allow generating of revenue through investment characterized by a reduced period. They include small goals such as investing in the US savings bond since their maturity is quick and favours a short-term investment. Another investment vehicle is Federal Deposit Insurance Corporation since they allow a person access to funds without penalties.
Deficit simply means that the government is spending more than it is acquiring from taxes. Factors that lead to inflation attribute to exponential growth of the monitory base superseding that of amount of goods and services in the economy. Factors to consider include how the deficits are financed. If financed by the treasury then no inflation occurs but if financed by the bank’s intervention then there is a high possibility for inflation.
