1. Your Bank has an opportunity to invest in a loans portfolio yielding 10.25% . You are given the following estimate of funds available at different interest rates/ Please calculate the marginal interest rate paid for each additional amount raised and decide the ideal interest rate that should be offered to maximize the net returns for the loan portfolio, and the net income achieved at this level of offerd interest amount of investment;

   		In Million $
   Interest Rate Offered		Funds Raised
   4%		10
   5%		15
   6%		20
   7%		25
   8%		30
   10%		50

   		5%, $750,000
   		9%,$700,000
   		6%,$850,000
   		7%, $887,,000