Page 1 of 1
MTB Bank offers one-year loans with a 9 percent stated or base rate, charges a 0.25 percent loan origination fee, impose
Posted: Sun Jul 03, 2022 12:56 pm
by answerhappygod
- Mtb Bank Offers One Year Loans With A 9 Percent Stated Or Base Rate Charges A 0 25 Percent Loan Origination Fee Impose 1 (51.27 KiB) Viewed 15 times
MTB Bank offers one-year loans with a 9 percent stated or base rate, charges a 0.25 percent loan origination fee, imposes a 10 percent compensating balance requirement, and must hold a 6 percent reserve requirement at the Federal Reserve. The loans typically are repaid at maturity. If the risk premium for a given customer is 2.89 percent, what is the contractually promised gross return on the loan per dollar lent? 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.