Question

Joy's Java Café needs $4,000 cash per day for customer transactions. Joy has a choice between going to the bank first thing on Monday morning to withdraw $20,000 - enough cash for the whole week - or going to the bank first thing every morning for $4,000 each time. Joy puts the cost of going to the bank at $3 per trip. Assume that funds left in the bank earn precisely enough interest to keep their purchasing power unaffected by inflation. Joy's Java Cafe is open 5 days a week for 50 weeks each year. When the inflation rate is 10% Joy goes to the bank everyday instead of once a week. Joy's annual shoe leather costs of inflation equal _.'

Answer 1

Answer:

$600

Explanation:

Given:

Total number of week = 50 Trip

Each trip cost = $3

Number of working days in a week = 5

After 10% Inflation rate number of trip = 50 (one day in a week = 1 x 50 weeks )

Calculation:

Without inflation Trip = 50 trip x 5 Days

                                   = 250 trip

After Inflation = 250 - 50 Trips

                       = 200 Trips

Total cost = 200 x 3$

                 = $600