20. A bank has determined that its marginal cost of raising funds is 4.5 percent and that its nonfunds costs to the bank are os percent. It has also determined that its margin to compensate the bank for default risk for a particular customer is 0.30 percent. It has also determined that it wants to have a profit margin of 0.3 percent. If this customer wants to borrow $10,000,000, how much in total interest costs will this customer pay in one year? A. S450,000 B. $480,000 C. $510,000 D. 5560,000 21. A bank has a prime rate of 6 percent for its best customers. It has determined that the default risk premium for a particular customer is 0.4 percent and the term-risk premium for this loan is 0.25 percent. If this customer wants to borrow $5.0 million from the bank how much in interest will this customer pay in one year? A $332.500 B. $665,000 C. $300,000 D. $320.000 22. A bank has determined the information below for one of its customers. This customer wants to borrow S1,000,000 but will maintain an average deposit balance in its account of $200,000. What is the expected net rate of return on this loan? Espoon Interest Cader 315.000 dolased Digit Service 5.000 Le Code 000 til SO 56.900 A. 10,00 percent B. 8. 20 percent C. 10.25 percent D. 13.75 percent 23. Hager Smith, a customer of Standard Bank, maintains an average balance of $420,000. The float from uncollected funds from his balance, accounts for $21,000. The applicable legal reserve requirement at this checking account is 10 percent. Determine Smith's net usable funds. A $359,100 B. 5396.900 C. 5378,000 D. $199,000