Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please show the calculations The bank has determined the information below for one of its customers.This customer wants to borrow $1,000,000 but will maintain an

image text in transcribedplease show the calculations

The bank has determined the information below for one of its customers.This customer wants to borrow $1,000,000 but will maintain an average deposit balance in its account of $200,000 What is the expected net rate of return on this loan? cted Revenues cted Costs Interest Revenues Commitment Fee Deposit Service Fees Agency Fees $1,000,000 $15,000 $5,000 $6000 Deposit Interest Cost of Other Funds Raised Loan Processing Costs Activity and Record Keeping Costs $30,000 $890,000 $8000 $16,000 A) 10.00 percent B) 8.20 percent C) 10.25 percent D) 13.75 percent E) None of the above Answer:C

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Literacy For Managers

Authors: Richard A. Lambert

1st Edition

1613630182, 978-1613630181

More Books

Students also viewed these Finance questions

Question

Explain the nature of human resource management.

Answered: 1 week ago

Question

Write a note on Quality circles.

Answered: 1 week ago

Question

Describe how to measure the quality of work life.

Answered: 1 week ago