Question

Assuming there are 2,000 interest-bearing checking accounts, calculate the cost per account using the activity rates from Requirement 1. Round your answers to the nearest cent. Unit cost $fill in the blank 6 3. A time equation is used to assign resource costs to checking accounts. Select a time equation for the interest-bearing checking account product. 0.20(number of accounts) + 0.10(number of statements) + 0.05(number of transactions) + 0.15(number of inquiries) Again, assuming that there are 2,000 interest bearing accounts, show that the resource cost per account is the same as calculated in Requirement 2. Round your answers to the nearest cent.

Answer 1

To calculate the cost per account, use the given time equation and substitute the value of the number of accounts. Round the answer to the nearest cent.

Step-by-step explanation:

To calculate the cost per account, we need to use the given time equation for the interest-bearing checking account product. The time equation is:

0.20(number of accounts) + 0.10(number of statements) + 0.05(number of transactions) + 0.15(number of inquiries)

Given that there are 2,000 interest-bearing accounts, we can substitute this value into the equation:

Cost per account = 0.20(2,000) + 0.10(number of statements) + 0.05(number of transactions) + 0.15(number of inquiries)

Simplifying this equation, we get:

Cost per account = 400 + 0.10(number of statements) + 0.05(number of transactions) + 0.15(number of inquiries)

Now, you can round the answer to the nearest cent to find the cost per account.