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? Expected Revenues Expected Costs Interest Revenues $1.000,000 Deposit Interest $30,000 Commitment Fee $15,000 Cost of Other Funds Raised $890,000 Deposit Service Fees $5,000 Loan Processing Costs $8.000 Agenoy Fees $6,000 Activity and Record keeping $16,000 Costs 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