Income Approach seems to fit best but i'm not quite sure.
Sorry if it's wrong.
Answer:
The monthly withdrawal is $701.10
Explanation:
The monthly withdrawal can be computed with PMT formula using excel spreadsheet.
The formula is PMT(rate,nper,-pv)
The fv and type are both taken as zero.
However, the rate of 5.5 % given in the question is a yearly rate,but the requirement of the question is monthly withdrawal, hence the rate is divided by 12 months to reflect a monthly rate i.e 5.5%/12
Besides, the nper should also to be adapted to show that the withdrawal is to be made every month for 18 years, hence nper is 12*18
The computation of the pmt based on the above highlighted points is found in the attached.
Answer:
The explanation is given as follows.
Explanation:
<u>Task 1: </u>
<u>The higher the percentage of assets a bank holds as loans, the higher the capital requirement.</u>
When the owners of the bank borrow $100 to supplement their existing reserves , both reserves and debt increase by $100 , therefore increase in debt as in any balance sheet , the total value of accounts on the left hand should be equal to the right hand , so when there is increase in reserves , there will be increase in debt.
<u>Task 2:</u>
<u>It specifies a minimum leverage ratio for all banks
</u>
leverage ratio initially = total assets / capital = 1750 / 125 = 14
leverage ratio new value = total assets / capital = 1850 / 125 = 14.8 ( the assets increase by $100 with increase in reserves)
<u>Task 3</u>
<u>Its intended goal is to protect the interests of those who hold equity in the bank.</u>
Capital requirement are there to ensure that bank have enough capital to repay the depositors and debtors and if a bank holds a higher percent of risky assets , capital requirements will be higher so that the bank remains solvent hence option a is right answer.
Answer:
1969.6%
Explanation:
The computation of the effective annual rate is given below;
Given that
It is been charged $12 for $200 loan for 7 days
So for 7 days,
the nominal interest rate is is
= 12 ÷ 200 × 100
= 6%
Now
(1+r) = (1+0.06)^{52}
(1+r) = 20.696
r = 19.696
= 1969.6%
Answer:
$241,500
Explanation:
Calculation for What amount should Sunland report as its December 31 inventory
December 31 inventory per physical count $190,500
Add Goods-in-transit purchased FOB shipping point $29,000
Add Goods-in-transit sold FOB destination $22,000
December 31 Inventory $241,500
($190,500 + $29,000 + $22,000 = $241,500)
Therefore What amount should Sunland report as its December 31 inventory is $241,500
