All categories

3 years ago

Why can a bank afford to pay interest rate on a savings account

Business

2 answers:

baherus [9]3 years ago

7 0

Answer:

Banks use the money from borrowers whom they charge at a high interest rate, and gives a lower rate to the people who have a savings account.

Nadusha1986 [10]3 years ago

3 0

How can a bank afford to pay interest? Banks use the money deposited on savings accounts to lend to borrowers, who pay interest on their loans. ... The difference between the money earned as interest on loans, any operating expenses, and the money paid as interest to savings accounts is profit to the banks.

You might be interested in

Congress enacts a statute to outlaw a specific type of anticompetitive business agreement. Like other laws that regulate economi

zhannawk [14.2K]

B. Antitrust law

Antitrust laws are passed with the intention of promoting fair business practices and free competition in the market.

8 0

3 years ago

Suppose that total sales in an industry in a particular year are $600 million and sales by the top four sellers are $200 million

Reil [10]

Answer: A: price leadership exists in this industry

Explanation:

hope this helps

3 0

3 years ago

What determines the total value of annual u.s. gdp?

____ [38]

<span>C.The spending and production decisions of consumers, firms, governments, and foreigners.</span>

4 0

3 years ago

Jeremiah Brown has been making contributions into an individual retirement account for his retirement. His contributions are not

ladessa [460]

Answer:

Th answer is: Roth IRA account

Explanation:

A Roth IRA is an individual retirement plan where you are contributing after-tax dollars. That means you get no tax deduction for your contributions but th money it earns is tax-free. Once you start to withdraw your funds, you pay no taxes for them if your are at least 59 and a half years old.

7 0

3 years ago

Danks Corporation purchased a patent for $405,000 on September 1, 2019. It had a useful life of 10 years. On January 1, 2021, Da

Andrei [34K]

Answer:

Amortization Expense for year 2021 $90,000

Explanation:

The computation of the amount that should be reported for patent amortization for the year 2021 is shown below:

But before that following calculations need to be done

The value of the patent as of 31st Dec, 2020

Purchase Value as of Sep 1,2019 $405000

Less:- Amortization Expense for the year 2019 $13,500

($405000 ÷ 10 × 4 ÷ 12)

Less:- amortization expense for the year 2020 $40500 ($405,000 ÷ 10)

Value of patent as on 1st Jan, 2021 $351,000

Add:- fees to defend $99000

New Book Value for the year 2021 $450,000

Now Remaining Useful Life 5 years

So,

Amortization Expense for year 2021 $90,000 ($450,000 ÷ 5)

6 0

3 years ago