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2. Followings are the information of Motu Patlu Bank Ltd. Expected Volume of Rate Offered on New New Deposits Funds 1 100,000,000 2.00% 2 200,000,000
2. Followings are the information of Motu Patlu Bank Ltd. Expected Volume of Rate Offered on New New Deposits Funds 1 100,000,000 2.00% 2 200,000,000 2.25% 3 300,000,000 2.50% 4 400,000,000 2.75% 5 500,000,000 3.00% 6 600,000,000 3.25% Marginal Revenue Rate 4.25% From the above information, calculate the optimal rate of interest the bank should offer on the deposits so that marginal cost does not exceed marginal revenue. (15)
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