Question: please make final answer clear, thank you! Suppose that a bank does the following: a. Sets a loan rate on a prospective loan with BR=7.14%
please make final answer clear, thank you!
Suppose that a bank does the following: a. Sets a loan rate on a prospective loan with BR=7.14% and =3.34%. b. Charges a 0.3 percent loan origination fee to the borrower. c. Imposes a 5 percent compensating balance requirement to be held as noninterest-bearing demand deposits. d. Holds reserve requirements of 8 percent imposed by the Federal Reserve on the bank's demand deposits. Calculate the bank's ROA on this loan. Note: Convert your answer to percentage format, Enter your answer rounded to 2 decimals, and without any units. So, for example, if your answer is 3.4568%, then just enter 3.46
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