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Paraphin [41]
3 years ago
7

A bank has $10 million in vault cash and $110 million in deposits. If total bank reserves were $15 million with $2 million consi

dered to be excess reserves, what required reserves ratio is implied?
Business
1 answer:
Yuri [45]3 years ago
6 0

Answer:

Reserve ratio will be equal to 11.81 %

Explanation:

We have given vault cash = $10 million

Total deposit = $110 million

Reserve amount is equal to $15 million

And excess reserve = $2 million

So actual reserve amount = $15 - $2 = $13 million

Reserve ratio is equal to the ratio of reserve amount and deposited amount

So reserve ratio \frac{13}{110}=0.1181 = 11.81%

So reserve ratio will be equal to 11.81 %

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On January 1, 2018, Allgood Company purchased equipment and signed a six-year mortgagenote for $186,000 at 15%. The note will be
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Explanation:

An amortization schedule is a complete table of periodic loan payments, showing the amount of principal and the amount of interest that comprise each payment until the loan is paid off at the end of its term. While each periodic payment is the same amount early in the schedule, the majority of each payment is interest; later in the schedule, the majority of each payment covers the loan's principal.

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i= 15%

n= 6 years

First pay:

i=186000*0,15=27900

amortization= 49148-27900=21248

Second pay:

i=(186000-21248)*0,15=24712

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Third pay:

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3 years ago
When a parent uses the equity method throughout the year to account for its 80% investment in an acquired subsidiary, which of t
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c. Parent company total assets equals consolidated total assets

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3 years ago
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