What interest rate on deposits generates the greatest profit

Assignment Help Finance Basics

Reference no: EM132078429

Question: A savings and loan association estimates that the amount of money on deposit will be 1,000,000 times the percentage rate of interest. For instance, a 2% interest rate will generate $2,000,000 in deposits. Suppose the savings and loan association can loan all the money it takes in at 4% interest. What interest rate on deposits generates the greatest profit?

Reference no: EM132078429

Questions Cloud

Define how much will sarah have to invest today : Sarah Wiggum would like to make a single investment and have $1.7 million at the time of her retirement in 32 years. She has found a mutual fund.

What amount should huxley include as ordinary income : What amount should Huxley include as ORDINARY INCOME in his income tax return as a result of the sale of the land in the current income tax year

Define a work breakdown structure : Presents a duration estimate for each task which results in a duration estimate for the project not to exceed the requirements described in the overview.

Comment on its growth rates over the period : Comment on its growth rates over the period of last ten years about 300 words.

What interest rate on deposits generates the greatest profit : A savings and loan association estimates that the amount of money on deposit will be 1,000,000 times the percentage rate of interest.

What is the total amount you will pay : The loan is $124,000 with a down payment of 3.5% and a 30 year agreement paying off the loan with 4% interest. What is the total amount you will pay

Compute the present value of mining profits in the area : Compute the present value of mining profits in the area (i.e. excluding effects on recreation) if the discount rate is a) 6 percent b) 3 percent

Identify the key roles and responsibilities of individuals : Identify the key roles and responsibilities of individuals and departments within the organization as they pertain to risk management.

Compute the cost of the ending inventory : Lisa had 190 units in ending inventory. Compute the cost of the ending inventory and the cost of goods sold under FIFO, LIFO, and average-cost

User Account

All Pages