In light of the new cost information, Larry Roberts, the bank president, wanted to know whether a decision made two year ago to modify the bank’s checking account product was sound. At that time,the service charge was eliminated on accounts with an average annual balance greater than $1000.Based on increases in the total dollars in checking, Larry was pleased with the new product. The checking account product is described as follows:1. Checking account balances greater than $500 earn intrest of 2 percent per year, and 2. A service charge of $5 per month is charged for balance less than $1000.the bank earns 4 percent on checking account deposits. Fifty percent of the accounts are less than $500 and have an average balance of $400 per account. Ten percent of the accounts are between $500 and $1,000 and average $750 per account.