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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:

A. Debit Cash $1,000 and Debit Accounts Receivable $5,000 and Credit Fees Income $6,000

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When revenue is earned and cash is paid, debit cash and credit revenue. However, when revenue is earned and cash is yet to be paid, debit accounts receivable and credit revenue.

Hence, given that Smart Services performed $6,000 of services. Their customer paid $1,000 of the amount right away but charged the remaining amount.

Entries required are

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3 years ago
A city government is considering raising the local income tax to pay for improvements to government facilities. a private citize
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The results of the survey will most likely suffer from wording bias.

Wording bias:

Wording bias, also called question-wording bias or “leading on the reader” (Gerver & Sgroi, 2017) happens in a survey when the wording of a question systematically influences the responses (Hinders, 2019).

Is wording bias a type of response bias?

Wording bias can come into effect here as well

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11 months ago
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The assumption that is necessary for a linear programming model to be appropriate and that ensures that the value of the objecti
Elan Coil [88]

Answer:

A. Additivity

Explanation:

Additivity simply means that the values of an objective function and total resources used can be found by adding all the contributions made by the objective functions and the decision variables of all resources used. That is, it assumes that the overall of an objective function is found by adding the contribution of each objective function to the overall. In additivity, interaction between variables doesnt exist.

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Dollar Co. sold merchandise to Pound Co. on account, $25,500, terms 2/15, net 45. The Pound Co. paid the invoice within the disc
Scorpion4ik [409]

Answer:

c. $24,990

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The Term 2/15 net 45 mean 2% cash discount is offered if the payment is made within 15 days otherwise the credit period is 45 days. There is no after 15 days of sale.

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3 years ago
Dialogue with a goal of helping another be more effective and achieve his or her full potential on the job is referred to as
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