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Hitman42 [59]
2 years ago
5

If the reserve rate is 8% and a bank receives a deposit of $7000, how much of

Mathematics
1 answer:
irina [24]2 years ago
4 0

Answer:

The bank can lend $6440 from the deposit amount of $7000

Step-by-step explanation:

Given deposit amount:

$7000

Since the reserve rate is 8%, 8% of 7000 will be reserved by the bank. The bank can lend the remaining amount.

Reserved amount = 7000 * (8/100)

= $560

Amount the bank can lend = 7000-560 = $6440

The bank can lend $6440 from the deposit amount of $7000 ..

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