AFP
CTP · Question #615
CTP Question #615: Real Exam Question with Answer & Explanation
The correct answer is D. $22,530,864. See the full explanation below for the reasoning.
Question
- (Topic 7) XYZ Company is a net borrower. Its cost of funds is 5.0%, its earnings credit rate is 3.0%, and the reserve requirement is 10%. Average service fees are $50,000 per month. Its average ledger balance is $2,000,000, and its average collected balance is $1,000,000. What are the collected balances required to pay for services during a 30-day month?
Options
- A$12,166,667
- B$13,518,519
- C$20,277,778
- D$22,530,864
Community Discussion
No community discussion yet for this question.