In June, the Sunbelt Company utilizes direct sends for which its bank charges fees of $100. The bank's earned credit ratio and reserve requirement are 5% and 12%, respectively. What is the minimum balance required to compensate the bank for the June fees?© BrainMass Inc. brainmass.com June 3, 2020, 8:00 pm ad1c9bdddf
To offset some or all of the service charge, an earnings credit is given on the ...
Simple calculation showing a minimum balance needed to offset bank fees with regards to the bank's earned credit ratio and the reserve requirement.