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Trim Gym has a monthly collected balance of $500,000.Simmons First Bank (Trim Gym's relationship lender) pays a 0.60% earnings credit rate.The legal reserve ratio is

Trim Gym has a monthly collected balance of $500,000. Simmons First Bank (Trim Gym's relationship lender) pays a 0.60% earnings credit rate. The legal reserve ratio is 10%.


a. If there are 30 days in the month, calculate the Trim Gym monthly earnings credit.

b. Suppose the owner of the Trim Gym can renegotiate the income credit rate to 0.75%. How much will the earnings credit increase from your answer to part a?

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