12ParagraphStyles3. Suppose you dopiest SR 5000 in currency into your checking account at a branch ofAl-Rajhi Bank, which we will assume that the required reserve ration is %10.a.Use a T-account to show the initial effect of this transaction on Al-Rajhi's balancesheet.b. Suppose that Al-Rajhi Bank makes the maximum loan it can from the fund youdeposited. Use a T-account to show the the initial effect of this transaction on Al-Rajhi's balance sheet. Also include in this T-account the transaction from part (a).c. Now suppose that whoever took out the loan in part (b) writes a check for this amountand that person receiving the check deposit in Alinma Bank. Use a T-account to showthe the initial effect of this transaction on Alinma's balance sheet.ribility InvestigateFocus

Balance sheet stands for the statement and information that shows the assets and liabilities of the…

Answered: 3. Suppose you dopiest SR 5000 in…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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5) According to a recent WalletHub report, the average credit card balance is $10,848 per American household, at an average 22.75% APR. How long will it take for a credit card balance of $10,848 to be paid off with monthly $40 minimum payments? How much interest will the credit card debt cost?
1. Which credit card offers the best interest rate? 2. Which credit card has the highest annual percentage rate? Platinum Citibank, Visa 3. What fee is the same for all the credit cards shown and how much is it? Cash Advance Fee, 3% 4. Which credit card has the highest annual fee? 5. Which credit card do you think is the worst card to obtain? Explain why. 6. Which credit card do you think is the best card to obtain? Explain why.
You are the loan department supervisor for a bank. This installment loan is being paid off early, and it’s your task to calculate the rebate fraction, the finance charge rebate (in $), and the payoff for the loan (in $). (Round to the nearest cent)
Ee 332.
1. You want to open a checking account with a $500 deposit. You estimate you will write 10 checks a month and use an ATM from other banks about twice a week. Bank A charges $1 per check if you drop under a minimum balance of $100, but you can use another bank's ATM without a fee. Bank B has free checking but charges $1 each time you use another bank's ATM. Calculate the difference in fees between the two banks over the course of one year for the following scenarios: a. Your balance slips below $100 every other month. b. Your balance slips below $100 every other month, but you are now able to pay a bill online each month, dropping the number of checks you have to write to nine monthly. You also find you are only using the other bank's ATM about once a week. c. You maintain a minimum balance of $500, write three checks a week, and use another bank's ATM only about once a month.
Assume that there are 2 chartered banks and their T-accounts are below. Suppose that there are currently deposits of $850,000 in Bank A. Mohit borrows $100,000 from Bank A for a housing deposit to Cheng-Li. Cheng-Li takes that deposit and puts it into his bank, which is Bank B. The required reserve ratio is 18% for all banks. Assume that each bank will use the deposits to make loans and not save any for bank capital or bond purchases. You can use the following balance sheets, for Bank A and Bank B to help you answer the question: What are the reserves in Bank A before the money is borrowed from the bank? Bank A's Balance Sheet Reserves: Loans: Reserves: Loans: Answer: Assets Assets Liabilities Demand Deposits: Bank B's Balance Sheet Liabilities Demand Deposits:
You are the loan department supervisor for a bank. This installment loan is being paid off early, and it is your task to calculate the rebate fraction, the finance charge rebate (in $), and the payoff for the loan (in $). (Round dollars to the nearest cent.) Finance Amount Financed Number of Monthly Payments Payments Payment Made Rebate Fraction Charge Rebate $4,600 36 $163.33 32 +A $ Loan Payoff
Which do you prefer: a bank account that pays 5.0% per year (EAR) for three years or a. An account that pays 2.5% every six months for three years? b. An account that pays 7.5% every 18 months for three years? c. An account that pays 0.50% per month for three years? (Note: Compare your current bank EAR with each of the three alternative accounts. Be careful not to round any intermediate steps less than six decimal places.) If you deposit $1 into a bank account that pays 5.0% per year for three years: The amount you will receive after three years is $ (Round to five decimal places.)
You are the loan department supervisor for a bank. This installment loan is being paid off early, and it is your task to calculate the rebate fraction, the finance charge rebate (in $), and the payoff for the loan (in $). (Round dollars to the nearest cent.) AmountFinanced Number ofPayments MonthlyPayment PaymentsMade RebateFraction FinanceChargeRebate LoanPayoff $4,600 36 $166.33 31 $ $
You are the loan department supervisor for a bank. This installment loan is being paid off early, and it is your task to calculate the rebate fraction, the finance charge rebate (in $), and the payoff for the loan (in $). (Round dollars to the nearest cent.) AmountFinanced Number ofPayments MonthlyPayment PaymentsMade RebateFraction FinanceChargeRebate LoanPayoff $1,800 18 $126.89 12 $ $
You are the loan department supervisor for a bank. This installment loan is being paid off early, and it is your task to calculate the rebate fraction, the finance charge rebate (in $), and the payoff for the loan (in $). (Round dollars to the nearest cent.) AmountFinanced Number ofPayments MonthlyPayment PaymentsMade RebateFraction FinanceChargeRebate LoanPayoff $4,700 36 $162.33 31 $ $
(Present value of complex cash flows) How much do you have to deposit today so that beginning 11 years from now you can withdraw $13,000 a year for the next 4 years (periods 11 through 14) plus an additional amount of $26,000 in the last year (period 14)? Assume an interest rate of 12 percent.

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