TRANSACTION NEED TO COMPLETE ON: "everything is mentioned"
- The month of May. A person walks in and withdraws $2MM out of the DDA-1 account. Remember, you must process this and all other transactions for May (Loan Payments).
- The month of June. A person walks in and borrows $500,000 at 7% for 3 years and deposits the funds into a DDA-2 account. Remember, you must process this and all other transactions for June (Loan)
G38 x fx =G36+17515.43 A B D E F G . K L M N 0 P Q R S T V W Y Z Banking Project $ Starting Point 45% 23% 32% DDA CD's DDA-2 Amount 5,000,000.00 2,500,000.00 3,500,000.00 Rate 1.00% $ 3.50% $ 0.00% $ Interest Paid (monthly) 4,166.67 7,291.67 $ 11,000,000.00 $ 11,458.33 Total Cost of Funds 1.250% Monthly Operational Expenses $ 15,000.00 Fed Funds Rate Discount Rate 15 Reserve Requirement 0.25% 0.50% 10.00% Statement Balance Profit and Loss (Monthly) Month Revenue Expenses Net Income/Loss (transaction) Balance Sheet (Deposits on hand) (Liabilities) Reserve Requirement (deposits X RR) Deposits on hand larger than RR? Rolling Net Income/Loss Yes No January $ 20,000.00 $ 26,458.34 $ (6458.34) $ 7,000,000.00 $ 1,000,000.00 $ (6458.34) 19 20 Transactions are monthly 21 22 Transaction #1 Borrower comes in to borrow $3,000,000 for 10 years at 8%. He 23 deposits money at different bank 24 25 Transaction #2 Depositor makes a $1,000,000 deposit 26 into a DDA-2 account 27 28 Transaction #1 2nd payment February $ 8,016,398.00 $ 1,100,000.00 X $ (6458.34) February $ 19,890.68 $ 26,458.34 $ (6,567.66) $ 8,032,905.60 $ 1,100,000.00 $ (13,026.00) $ (18,958.34) $ 7,050,290.60 $ 1,100,000.00 $ (31,984.34) 30 Transaction #3 1st payment March $ 7,500.00 $ 26,458.34 Borrower takes out a 1MM loan at 9% for 4 years. He deposits money at a different bank. 32 Transaction #1 3rd payment March $ 19,780.00 S $ 19,780.00 $ 7,066,907.60 $ 1,100,000.00 $ (12,204.34) es (17,291. 34) $ 6,079,483.36 $ 1,100,000.00 $ (29495.68) Transaction #4 1st payment April $ 9,167.00 $ 26,458.34 Borrower takes out a $1MM loan at 11% for 5 years. He deposits money at a different bank Transaction #1 4th payment April $ 19,669.84 $ $ 19,669.84 $ 6,096,211.80 $ 1,100,000.00 $ (9,825.84) 37 Transaction #3 2nd payment April $ 7,369.61 $ $ 7,369.61 $ 6.113.727.23 $ 1,100,000.00 X $ (2,456.23) 40 41 47 G38 x fx =G36+17515.43 A B D E F G . K L M N 0 P Q R S T V W Y Z Banking Project $ Starting Point 45% 23% 32% DDA CD's DDA-2 Amount 5,000,000.00 2,500,000.00 3,500,000.00 Rate 1.00% $ 3.50% $ 0.00% $ Interest Paid (monthly) 4,166.67 7,291.67 $ 11,000,000.00 $ 11,458.33 Total Cost of Funds 1.250% Monthly Operational Expenses $ 15,000.00 Fed Funds Rate Discount Rate 15 Reserve Requirement 0.25% 0.50% 10.00% Statement Balance Profit and Loss (Monthly) Month Revenue Expenses Net Income/Loss (transaction) Balance Sheet (Deposits on hand) (Liabilities) Reserve Requirement (deposits X RR) Deposits on hand larger than RR? Rolling Net Income/Loss Yes No January $ 20,000.00 $ 26,458.34 $ (6458.34) $ 7,000,000.00 $ 1,000,000.00 $ (6458.34) 19 20 Transactions are monthly 21 22 Transaction #1 Borrower comes in to borrow $3,000,000 for 10 years at 8%. He 23 deposits money at different bank 24 25 Transaction #2 Depositor makes a $1,000,000 deposit 26 into a DDA-2 account 27 28 Transaction #1 2nd payment February $ 8,016,398.00 $ 1,100,000.00 X $ (6458.34) February $ 19,890.68 $ 26,458.34 $ (6,567.66) $ 8,032,905.60 $ 1,100,000.00 $ (13,026.00) $ (18,958.34) $ 7,050,290.60 $ 1,100,000.00 $ (31,984.34) 30 Transaction #3 1st payment March $ 7,500.00 $ 26,458.34 Borrower takes out a 1MM loan at 9% for 4 years. He deposits money at a different bank. 32 Transaction #1 3rd payment March $ 19,780.00 S $ 19,780.00 $ 7,066,907.60 $ 1,100,000.00 $ (12,204.34) es (17,291. 34) $ 6,079,483.36 $ 1,100,000.00 $ (29495.68) Transaction #4 1st payment April $ 9,167.00 $ 26,458.34 Borrower takes out a $1MM loan at 11% for 5 years. He deposits money at a different bank Transaction #1 4th payment April $ 19,669.84 $ $ 19,669.84 $ 6,096,211.80 $ 1,100,000.00 $ (9,825.84) 37 Transaction #3 2nd payment April $ 7,369.61 $ $ 7,369.61 $ 6.113.727.23 $ 1,100,000.00 X $ (2,456.23) 40 41 47
