Weighted Marginal Cost of Funds.The table below provides information that can be used to estimate Northwestern National Bank’s weighted marginal cost of funds. The estimates represent a best-guess forecast of the funding sources and associated costs for the year. Follow the format in Exhibit 10.11 and calculate the bank’s forecasted weighted marginal cost of funds.

  

Liabilities and Equity Demand deposits Interest checking Money market demand accounts Other savings accounts Time deposits $100,000 Total deposits Federal funds purchased Other liabilities Total liabilities Stockholders equity Total liabilities and equity *Required return Average Amount $44,500 69,900 49,800 25,100 187,600 63,000 439,900 18,000 7,500 465,400 34,600 500,000 Interest Cost 0.0% 1.1 1.8 2.3 2.8 3.5 1.0 12.5%* Processing and Acquisition Costs 6.7% 5.0 1.6 1.0 1.5 0.3 0.0 0.0 Investable Percentage 85.0% 86.0 97.0 98.0 98.0 97.0 100.0 50.0 95.0