Answered step by step
Verified Expert Solution
Question
1 Approved Answer
solve by steps please 26. From an analysis on its deposits, a bank determines that account processing and other operating expenses cost the bank $4.45
solve by steps please 26. From an analysis on its deposits, a bank determines that account processing and other operating expenses cost the bank $4.45 per month. The bank has also determined that non-operating expenses on its deposits are $1.15 per month. It has also decided that it wants a profit of $0.45 on its deposits. What monthly fee should the bank charge on its deposit accounts? A. $6.05 B. $5.60 C. $5.15 D. $4.45 27. If you deposit $1,000 into a certificate of deposit that quotes you a 5.5% APY, how much will you have at the end of 1 year? A. $1,050.00 B. $1,055.00 C. $1,550.00 D. $1,005.50 28. A bank quotes an APY of 8%. A small business that has an account with the bank had $2,500 in their account for half the year and $5,000 in their account for the other half of the year. How much in total interest earnings did the business make during the year? A. $300 B. $200 C. $400 D. $150 29. A customer makes a savings deposit for 60 days. During that time he earns $11 in interest and maintains an average daily balance of $1,500. What is the annual percentage yield on this savings account? A. 0.73% B. 4.32% C. 4.54% D. 4.78% 30. A bank expects to raise $20 million in new money if it pays a deposit rate of 7%, $60 million in new money if it pays a deposit rate of 7.5%, $100 million in new money if it pays a deposit rate of 8%, and $120 in new money if it pays a deposit rate of 8.5%. The bank expects to earn 9.5% on all money that it receives in new deposits. What is the marginal cost of deposits if the bank raises their deposit rate from 7.5% to 8%? A. 11% B. 8.75% C. 7.75% D. 7%
solve by steps please
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started