Q.4084 XYZ bank determines that its basic checking account costs the bank $5.00 per month in servicing costs (assume the servicing costs are labor and computer time) and $3.00 per month in overhead expenses. This account requires a $500 minimum balance. Additionally, the bank also tries to build a $0.40 per month profit margin on these accounts. Further analysis of ABC Savings Bank customer accounts reveals that for each $120 above the $500 minimum balance maintained in its checking accounts, the bank saves about 6% in operating expenses with each customer account. For a customer who is consistent in maintaining an average monthly balance of $860, how much should the bank charge to protect its profit margin?