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exis [7]
3 years ago
10

The Tidewater State Bank has $1000 in total assets (all of which are earning assets), $700 of which will be replaced with in the

next 90 days. This bank also has $800 in total liabilities, $400 of which will be replaced within the next 90 days. Currently, the bank is earning 8% on its assets and is paying 5% on its liabilities. If interest rates do not change in the next ninety days, what is this bank's net interest margin?
Business
1 answer:
Nesterboy [21]3 years ago
5 0

Answer:

4.6%

Explanation:

The computation is shown below:

= (Interest on assets - Interest on liabilities) ÷ (Total earning assets)

where,

Interest on assets = (8% + 2% × $700) + 8% × $300

= $70 + $24

= $94

Now the interest on liabilities equal to

= 5% × 400 + (5% + 2% × 400)

= $20 + $28

= $48

So, the net interest margin equal to

= ($94 - $48) ÷ ($1,000)

= 4.6%

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Answer:

yes

Explanation:

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3 years ago
Read 2 more answers
On July 14 joseph invested $12000 in a fund that was growing at 5% compound semi annually
kramer

Answer:

$12,300

Explanation:

I will assume that Joseph invested in the fund on July 14, 2013.

We have to calculate the future value to March 15, 2014 (8 months later).

since the interest is compounded semi annually, it will earn interest on January  14, 2014.

Future value = $12,000 x (1 + 2.5%) = $12,300

since the fund is going to earn interests again on July 14, 2014, the value on march 14 is the same = $12,300

5 0
2 years ago
A company is considering building a new factory, which department is most likely going to be in charge of evaluating options to
mamaluj [8]

Answer:

Explanation:

Sunk, or past, costs are monies already spent or money that is already contracted to be spent. A decision on whether or not a new endeavor is started will have no effect on this cash flow, so sunk costs cannot be relevant.

For example, money that has been spent on market research for a new product or planning a new factory is already spent and isn’t coming back to the company, irrespective of whether the product is approved for manufacture or the factory is built.

Committed costs are costs that would be incurred in the future but they cannot be avoided because the company has already committed to them through another decision which has been made.

5 0
3 years ago
A company manufactures three products, A, B, and C. The following information is available about the products on a per unit basi
borishaifa [10]

Answer:

Hi the demand for each  product for this question is missing, however, i have provided step by step approach to solving the problem below .

Explanation:

First Calculate the contribution per unit of each product

                                                        A                           B                            C

Sales price                                  $65.50                $57.50                  $75.25

Less Total variable cost            ($28.85)              ($26.50)                ($38.95 )

Less Direct material cost            ($11.25)                ($8.90)                 ($22.75)

Contribution                                $25.40                 $22.10                   $13.25

Calculate the contribution per limiting factor of each product and rank the products

<em>contribution per limiting factor = contribution per unit ÷ quantity per limiting factor per unit</em>

                                                        A                           B                            C

Contribution                                $25.40                 $22.10                   $13.25

Quantity of limiting factor             4.65                      6.3                          5.9

Contribution per limiting factor   5.46                      3.51                        2.25

Ranking                                            1                           2                             3

Allocate the limiting factor according to the limiting factor

The company will on produce Product A as this is the most profitable.

Contribution =  $25.40

7 0
3 years ago
Bass Accounting Services expects its accountants to work a total of 23 comma 000 direct labor hours per year. The​ company's est
MissTica

Answer:

Estimated indirect costs allocation rate= $14 per direct labor hour

Explanation:

Giving the following information:

Estimated direct labor hours= 23,000

Estimated indirect costs= $322,000.

To calculate the allocation rate, we need to use the following formula:

Estimated indirect costs allocation rate= total estimated indirect  costs for the period/ total amount of allocation base

Estimated indirect costs allocation rate= 322,000/23,000

Estimated indirect costs allocation rate= $14 per direct labor hour

4 0
2 years ago
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