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 $1,000,000 but will maintain an average deposit balance in its account of $200,000. What is the expected net rate of return on this loan?

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. $396,900 C. $378,000 D. $399,000

21. A bank has a primera perforis because the determined at the defender os particuliers de he risk of his faire part of his comes So the hul how much is not with pay in a ! ASSO 65.com CSO D. $330,000 22. A bank has determined to be one of time. This Narins of what the real le A 100 pont pre C1035 perc 11.15 percent 2. Hager Sath Standard Blanc SEXO The foot fete fonde from his balance 2. The game when on is 10 percent. Der Stefan A3199.100 III CSODO D. 579.000 10:52 Chapter 17 - Assign... 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 bunk, how much in imerest will this customer pay in one year? A. $332.500 B. 5665.00 C5300,000 D. S320,000 on this loan't 22. A bank has determined the information below for one of its customers. This customer wants to borrow $1,000,000 but will maintain an average deposit balance in its account of $200,000. What is the expected net rate of return Extol Rem Tipedia wewe 3. Deposit Celos $15.00 Cod Other Tepe SO Long Aditya SHA 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 flout 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 5359.100 B. $39,900 C. $378,000 D. $399.000 0 24. A firm submits their financial records to a bank. Upon examination, the