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i got stuck on calculating Investment income foregone where:
($1,430,000,000 – 1,040,000,000) x 3% – where is this 1,040,000,000 coiming from and why we need to calc Business customers’ account balances in the first place, why not use $831,280,000 to get to income foregone??
I can email a pdf of this question if needed, thxHi Agatka,
To calculate income forgone, you have to first calculate the current income, which will give you the figure of: 1 040 000 000
Current revenue: (1m custemers x 1000 transactions x $0.60 = 600m
add
Interest receivable by bank on negative balances (1m customers x 55% = 550 000 customers with neg. bank bal. x (-$4000 aver.bal)x 20% = 440mTotal current income:
660 000 000
440 000 000
_____________1,040,000,000
I hope this help 🙂
Sorry the total current income is:
600 000 000 (not 660 as above)
440 000 000
= 1 040 000 000I am stuck as well. i havent got a clue what the investment foregone means? what “the bank has a number of saving account customers which, together with the banks business customers,result in a balance of net funds tha are invested by the bank and yield an anual return of 3% per year”? why is (1365000000-1040000000)*3%?
please send me the kaplan by mail my mail add is ravinee87@yahoo.com thanks in advance
can i also have kaplan mock exam pls? my email agata_kubicka@hotmail.com, I can send bpp if anyone need it
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agatka ..hi…i need bpp mock exam pls send me..my mail id is 19kashmira@yahoo.co.uk..thanks..
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