We consider an accounting problem for a bank that acts as a financial intermediary between savers and borrowers. Make sure you have paper and pen handy. This one will involve tracking flows to and from banks over a period of five months.

In the first month of the bank's operation, $10$ savers each deposit $$100$ into the bank. So the bank begins with $$1000$ in cash on hand. We won't worry about interest payments to savers here, to keep things simple.

In the second month, the bank issues $5$ loans, each for $$120.$ The loans must be paid back over three months, so that each borrower pays $$40+$ interest in the third month, fourth month, and fifth month. The interest rate is $5\%($so each monthly interest payment will be $$2).$ After making these loans, how much cash does the bank have on hand? $$

In the third month, the bank collects loan repayments from each of its borrowers. One saver withdraws their full deposit. How much cash does the bank now have on hand? $

In the fourth month, three borrowers default on their loans and two make their repayments. Two savers withdraw their full deposits. How much cash does the bank now have on hand? $

In the fifth month, the remaining two borrowers default on their loans. how many savers are able to withdraw their full deposits? savers.