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A bank has a $100,000,000 loan portfolio that charges 2% a year with monthly compounding. It has the same amount of money in deposits that
A bank has a $100,000,000 loan portfolio that charges 2% a year with monthly compounding. It has the same amount of money in deposits that earn 1% a year with monthly compounding.
What amount does the bank earn on its loans each month?
What amount does it pay out to depositors each month?
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