The writer is very fast, professional and responded to the review request fast also. Thank you.
PROBLEMS
1). The following three one-year “discount” loans are available to
you:
Loan A: $120,000 at a 7 percent discount rate
Loan B: $110,000 at a 6 percent discount rate
Loan C: $130,000 at a 6.5 percent discount rate
a. Determine the dollar amount of interest you would pay on each loan and indicate the amount of net proceeds each loan would provide. Which loan would provide you with the most upfront money when the loan takes place?
b. Calculate the percent interest rate or effective cost of each
loan. Which one has the lowest cost?
2) Following are selected balance sheet accounts for Third State Bank:
vault cash _ $2 million; U.S. government securities _ $5 million; demand deposits _ $13 million; nontransactional accounts _ $20 million; cash items in process of collection _$4 million; loans to individuals _$7 million; loans secured by real estate _$9 million; federal funds purchased _$4 million; and bank premises _$11 million.
a. From these accounts, select only the asset accounts and
calculate the bank’s total assets.
b. Calculate the total liabilities for Third State Bank.
c. Based on the totals for assets and liabilities, determine the
amount in the owners’ capital account.
3). The Friendly National Bank holds $50 million in reserves at
its Federal Reserve District Bank. The required reserves ratio is
12 percent.
a. If the bank has $600 million in deposits, what amount of
vault cash would be needed for the bank to be in compliance
with the required reserves ratio?
b. If the bank holds $10 million in vault cash, determine the
required reserves ratio that would be needed for the bank to
avoid a reserves deficit.
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more