(Answered) A 50000 one year loan with a 1 origination fee and a 7

Management Studies

A $50,000 one year loan with a 1% origination fee and a 7% interest rate is funded with money on which the bank owes 3%. What is the expected pretax dollar spread on the loan? If the bank needs to net at least 3.5% on the funds lent, how many dollars can the bank spend on credit investigation, loan servicing, etc.? Would the bank be able to spend more if the loan amount was greater? What does this example suggest about credit analysis?

View complete question

Business Management, Management Studies

Category:- Business Management
Reference No.:- M92787240
Price:- $10

Verified Expert

Priced at $20 Now at $10, Verified Solution

Have any Question?Write your Review or question?

Related Questions in Business Management

List an organization that you believe has recently

List an organization that you believe has recently undertaken a proactive change. List an organization that you believe has recently undertaken a reactive change. For these questions below, consider a past or current wor ...

What prevented indentured servants from self-financing

What prevented indentured servants from self-financing their voyage to the colonies instead of paying for the voyage with the labor?

Question 1a study found that a man who is a cigarette

Question 1 A study found that a man who is a cigarette smoker has a risk of having a heart attack 5 times greater than a man who is a non-smoker. Which of the following statistics is quoted in this statement? -Baseline ...

You are going to interview the hr professional of a company

You are going to interview the HR Professional of a Company. Compose an interview questionnaire that asks about the background of the interviewee, the organization's background, and its talent management practices, espec ...

Both australia and singapore are common law countries

Both Australia and Singapore are common law countries. Singatron and Semicontronics conclude their first round of negotiations with a Letter of Intent (LOI). If the deal falls through, will either party be bound to its c ...

Explain the equity theory adams why would an administrative

Explain the Equity theory (Adams). Why would an administrative worker be better motivated by the Equity theory?

Examine how japan has impacted sony corporate culture and

Examine how JAPAN has impacted SONY corporate culture and practices. Give examples. Be especially careful to address the language, religious and ethical systems of JAPAN....200/300 words. GIVE 2 or 3 REFERENCES and use i ...

What is lean six sigma and what is used for in

What is Lean Six Sigma and what is used for in management?

This weeks discussion will focus on key aspects of the

This week's discussion will focus on key aspects of the marketing program, starting with price. First, watch this video: https://www.youtube.com/watch?v=pDmTjIy6XKI Now that you've watched the video and read chapter 6, w ...

What are costcos key success factors ksfs which of the 11

What are Costco's key success factors (KSFs) ? Which of the 11 sociotechnical principles can be seen in Costco?

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Business Management Expert