The table below provides information that can be used to estimate ABC bank's weighted marginal cost of funds for 2020. The estimates represent the best guess forecast for funding sources and associated costs for the year. (12marks)

Liabilities & Equity

Average

Interest cost

Process.&.. Nonearning Amount

Cost Percentage Demand deposit

544,500

0.0%

7.2% 17.0% Interest

checking

4.1%

5.0% 14.0% 69,900

MMDAs

49,800 4.8%

3.2% 3.0% Othersa

ving

accounts

25,100

5.0%

1.0%

2 . 0 % Time deposits $100,000 187,600

6 1 %

1.5% 2.0% Timedeposits >$100,000 63,000

7.8%

0.3% 3.0% Totaldeposits. $439,900

Federal fundspurchased 18,000

8.3%

0.0% 0.0% Other Liabilities 7,500

0.0% 50.0% Total liabilities

$465,400

Stockholders' equity 34,600

20.8%*

5.0% Total liab. & equity $500,000

Required retum

calculate the banks weighted marginal cost of capital