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Calculate the net income of the bank after one year of operations using the accruals principle Assets (Millions of $) - Begining of Period I

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Calculate the net income of the bank after one year of operations using the accruals principle

Assets (Millions of $) - Begining of Period I 300 Risk-weight 0% 20% 50% 100% Cost of Assets per year 3.00% 3.50% 3.50% 400 800 900 Rate of Lending per year 7.50% 8.109% 8-50% 8.75% Asset ranking - End of the Period 12% of assets ranked 3B. 88% ranked 1 15% of assets ranked 4, 85% ranked 2 5% of assets ranked 5.95% ranked 1 20% of assets ranked 3A. 80% ranked 1 5096 Spercific Provisions Based on Asset Ranking 40% 140 1% Bank's Finacial Situation - Beginning of the Period Corporate Tax Bank's Tier 1 Capital (Million $) Operating Expenses (Million $) Income from Fees (Million $) Bank's Tier 2 Capital (Million $) General Provisions Bank's Total Capital (Million $) NOTE: Assets ranked 3B and higher do not accrue interest 10 150 5% 20% 1.25% 30% 80% 100% 180

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