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    Sunbelt Company Bank Charges

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    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?

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    Solution Preview

    To offset some or all of the service charge, an earnings credit is given on the ...

    Solution Summary

    Simple calculation showing a minimum balance needed to offset bank fees with regards to the bank's earned credit ratio and the reserve requirement.