Reference no: EM131721702

Question: Gold Brick Bank plans to launch a new deposit campaign next week in hopes of bringing in from $100 million to $600 million in new deposit money, which it expects to invest at a 7.75 percent yield. Management believes that an offer rate on new deposits of 5.75 percent would attract $100 million in new deposits and rollover funds. To attract $200 million, the bank would probably be forced to offer 6.25 percent. Gold Brick's forecast suggests that $300 million might be available at 6.8 percent, $400 mil-lion at 7.25 percent, $500 million at 7.5 percent, and $600 million at 7.65 percent. What volume of deposits should the institution try to attract to ensure that marginal cost does not exceed marginal revenue?