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86 Question 4 87 88 Your banks is expecting the following demand schedule of new funds at these interest rate offers 89 Expected Volume of

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86 Question 4 87 88 Your banks is expecting the following demand schedule of new funds at these interest rate offers 89 Expected Volume of Rate Offered on New 90 New Deposits Funds 91 8,872,000 3.0000% 92 2 10,646,400 3.2500% 93 3 19,518,400 3.7500% 94 4 31,052,000 4.2500% 95 5 48,796,000 5.0000% 96 97 Expected yield on new loans 5.50% 98 99 00 Please calculate the following numbers 01 for each tranche of funds raised Marginal Cost Total of New Interest Deposit 02 Cost Money Marginal Cost Rate 03 1 Exp. Diff. In Marg. Rey and Cost Total Profits Earned 04 2 _05 3 4 -06 _07 5 86 Question 4 87 88 Your banks is expecting the following demand schedule of new funds at these interest rate offers 89 Expected Volume of Rate Offered on New 90 New Deposits Funds 91 8,872,000 3.0000% 92 2 10,646,400 3.2500% 93 3 19,518,400 3.7500% 94 4 31,052,000 4.2500% 95 5 48,796,000 5.0000% 96 97 Expected yield on new loans 5.50% 98 99 00 Please calculate the following numbers 01 for each tranche of funds raised Marginal Cost Total of New Interest Deposit 02 Cost Money Marginal Cost Rate 03 1 Exp. Diff. In Marg. Rey and Cost Total Profits Earned 04 2 _05 3 4 -06 _07 5

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