Problem 3 (10%):You have an account that requires a minimum monthly balance of $5000 if annual interest of 4 percent is to be earned monthly on its deposits.

Problem 3 (10%):
You have an account that requires a minimum monthly balance of $5000 if annual interest of 4 percent is to be earned monthly on its deposits. An account holder has maintained an average balance of $1000 for the first eight months of the year and $2000 for the last four months of the year. You have written an average of 15 checks a month and is not charged for these services. However, it costs the bank $0.03 to process each check. What is the average return earned (both explicit and implicit) by you the account holder over the full year if the minimum balance is reduced to $2000?
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Problem 4 (10%):
A bank has an average balance of transactions accounts, August 10 to 23, of $824.46 million. The average balance in the cash account is $42.014 million over this period. The bank is carrying forward a deficit of $1.276 million from the last reserve period. The rules require no reserves to be maintained for the first $8.5 million, 3 percent for amounts between $8.5 million and $45.8 million, and 10 percent thereafter. If over the first 12 days of the current reserve maintenance period the average daily reserve held were $37 million, what does the bank need to hold as reserves over the last two days to exactly meet the reserve requirement?