AFP Certified Treasury Professional CTP Question # 498 Topic 27 Discussion

AFP Certified Treasury Professional CTP Question # 498 Topic 27 Discussion

CTP Exam Topic 27 Question 498 Discussion:
Question #: 498
Topic #: 27

A bank's reserve requirement on demand deposits is 10%, and its earnings credit rate is 6%. If a company uses bank services amounting to $2,600 and has an excess of $550 in earnings credit, what is the average collected balance in the account based on a 30-day month?


A.

$123,921


B.

$461,889


C.

$585,810


D.

$709,731


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