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SashulF [63]
3 years ago
7

the ABC Company has a monthly collected balance of $600,000. Its bank pays an earning credit rate of 0.75%. The Reserve Requirem

ent Ratio is 10%. Given 30 days in the month, What is ABC's monthly earnings credit?
Business
1 answer:
ohaa [14]3 years ago
3 0

Answer: $332.1

Explanation:

Given that,

Monthly collected balance = $600,000

Bank pays an earning credit rate = 0.75%

Reserve Requirement Ratio = 10% of $600,000

                                              = $60,000

Investable amount = Monthly collected balance - Reserve requirement amount

                               = $600,000 - $60,000

                               = $540,000

 

ABC's monthly earnings credit:

= Investable amount × Earning credit rate × Time period

= 540,000 × 0.75% × \frac{30}{365}

= $332.1

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