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What is mbank profit when it charges

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Mbank has deposit liabilities of $100 million. It only keeps the minimum cash reserves required by law of 10%. Its annual costs (wages, rent, utilities, etc.) are $2.5 million.

What is Mbank's profit when it charges 7% annual interest on its loans, and pays 2% annual interest on its deposits?

Reference no: EM13331385

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