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CTP · Question #16
CTP Question #16: Real Exam Question with Answer & Explanation
The correct answer is D. $584,000. See the full explanation below for the reasoning.
Question
- (Topic 1) Assume the cost of an ACH transaction is $0.80, the charges for a wire transfer are $30.00, the monthly account maintenance fee is $10.00, and the company earns interest at an annual rate of 1.825% on overnight investments. What is the break-even point where the interest earned on overnight investments offsets the incremental wire costs?
Options
- A$3,840
- B$5,840
- C$284,000
- D$584,000
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