## How much profit does the bank make at the end of the year in this scenario? Scenario: In one year, a bank pays 2% interest on a<

Question

How much profit does the bank make at the end of the

year in this scenario?

Scenario: In one year, a bank pays 2% interest on a

$1,000 deposit. The same year, the bank charges 12%

interest on a $1,000 loan.

$100

$120

$140

$2,000

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Math
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2021-09-13T10:47:49+00:00
2021-09-13T10:47:49+00:00 2 Answers
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## Answers ( )

We have been given that in one year, a bank pays 2% interest on a $1,000 deposit. The same year, the bank charges 12% interest on a $1,000 loan. We are asked to find the profit of bank at the end of one year.

Let us find amount paid by bank on deposit of $1,000 in one year by finding 2% of $1,000.

Now we will find the amount earned by bank on a loan amount of $1,000 in one year by calculating 12% of $1,000.

The profit made by bank would be amount earned minus amount paid.

Therefore, the bank will make a profit ofat the end of the year and option A is the correct choice.Answer:its A.

Step-by-step explanation:edge 2020