Assume a basic bank as illustrated in

the table, with bank equity of $50.

RL = interest rate charged on a loan

RD = interest rate charged on a deposit

RG = interest rate on government bonds, which is fixed at 4 percent

Assets	Liabilities
Loans	Deposits
Gov't Bonds	Equity

Your bank is choosing between two alternatives (decision sets A and B), with the following

marketing estimates:

Decision Set A

Choosing RL = 8 percent, then customers will demand $150 of loans.

Choosing RD = 3 percent, then customers will supply $145 of deposits.

Decision Set B

Choosing RL = 9 percent, then customers will demand $120 of loans.

Choosing RD = 5 percent, then customers will supply $120 of deposits.

What is your bank's ROE under decision set A? (State your answer as percent and round to two decimal places; i.e. four and a quarter percent is 4.25)