Question
(1) A banks break even interest rate is determined by the following equation from the reading: R = k / [q+(1-q)p] k = principal and
(1) A banks break even interest rate is determined by the following equation from the reading:
R = k / [q+(1-q)p]
k = principal and interest to cover cost to bank
q = percentage of safe borrower
R = bank rate
p = probability of obtaining revenue ( 0 What would cause the overall bank rate R to increase? A decrease in k An increase in (1-q) An increase in q None of the above
a. b. c. d.
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Fundamentals Of Accounting Course 2
Authors: Claudia B. Gilbertson
9th Edition
053844827X, 9780538448277
