A banks review of its auto loans estimates credit losses of 1.33 percent annually. The bank currently

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A bank’s review of its auto loans estimates credit losses of 1.33 percent annually. The bank

currently has gross auto loans of $2, 000, 000. If the bank wants to earn a rate of 4.5 percent

(after losses) on its auto loans, what rate should it charge its borrowers? Express your answer as a percentage rounded to two decimal places (i.e. four and a quarter percent is 4.25)

Related Book For answer-question

Financial Reporting Financial Statement Analysis and Valuation a strategic perspective

ISBN: 978-1337614689

9th edition

Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

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Posted Date: Nov 10, 2023 02:07 AM

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A banks review of its auto loans estimates credit losses of 1.33 percent annually. The bank currently

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Financial Reporting Financial Statement Analysis and Valuation a strategic perspective

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