Hi, I need a second opinion on this problem. Is the answer below correct? Thanks

Question

Hi, I need a second opinion on this problem. Is the answer below correct? Thanks in advance. Dupree Funds is considering the fees charged by two banks. First America charges a flat rate of $0.11 per payment and First Western requires a deposit of $500,000 (that does not pay interest to Dupree), plus $.05 per payment. What is the number of payments per year where the costs of the two banks will be equal? Assume Dupree's cost of funds is 9%. . Answer: number of payments per year where the costs of the two banks will be equal = x $0.11*x = $.05*x + $500,000*9% x = 750,000

Explanation / Answer

yes,the answar is correct

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