3) Fill in the table below and calculate the overall weighted average cost of funds for Bank One. Use the information you calculated in the prior two problems to fill in the lines for Demand Deposits and 2-Year Retail CDs. Use the information given in the table below. Back into or calculate any other intermediate numbers as needed to complete the table. Your final answer should be an annual weighted average percent cost. Amount (5000) $4.770 I Weighted Avg Cost of Funds Interest Cost % of Total Total % Cost Operating Loanable Cost % Fund Source Demand Deposits Money Ma Account 2-Yr Retail CD: Jumbo CDs 1.0596 1,130 95.0% 3.4% 3,950 4.10% 0.296 98.0% 965 0.0% 13.59 100.096 $1,600 Total Liabilities Shareholder Equity Total Link & Equity Homework Assignment #2 - Bank One Cost of Funds 1) Bank One has a balance of $3,950 of 2-year retail certificates of deposit (CDs) from customers. They pay 2.45% annual interest on these CDs. They have determined that they have the following quarterly non-interest costs associated with 2-year CDs: Advertising costs per quarter = $40; Servicing costs per quarter = $10.7; and All other operational costs per quarter = $4.25 There are no reserve requirements on 2-year CDs and they have determined that they can utilize (loan or invest) 100% of these funds. Calculate the total cost (in annual percentage terms) of 2-year CDs for Bank One. 2) Bank One does not pay interest on demand deposits. They charge customers a small demand deposit account fee that generates a total of $150 per year for the bank ($150 in total for the bank, not in total per account). The bank has a total balance of customer demand deposits of $4,770. All non-interest costs associated with maintaining demand deposits is estimated to be 3.85% (per year) of the demand deposit balance. The bank is required by regulatory policy to hold 10% required reserves for demand deposits. Calculate the total cost (in annual percentage terms) of loanable/investable demand deposits for Bank One