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On average, 100 customers arrive per hour at Gotham City Bank. It takes a teller an average of two minutes to serve a customer. Interarrival and service times are exponentially distributed. The bank currently has four tellers working. The bank manager wants to compare the following two systems with regard to the average number of customers present in the bank and the probability that a customer will spend more than eight minutes in line.
¦ System 1: Each teller has his or her own line (and no moving between lines is permitted). Arriving customers are equally likely to choose any teller.
¦ System 2: All customers wait in a single line for the first available teller. If you were the bank manager, which system would you prefer?
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.
Accounting problems, Draw a detailed timeline incorporating the dividends, calculate the exact Payback Period b) the discounted Payback Period. the IRR, the NPV, the Profitability Index.
Term Structure of Interest Rates
Write a report on Internal Controls
Prepare the bank reconciliation for company.
Create a cost-benefit analysis to evaluate the project
Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR
Distinguish between liquidity and profitability.
Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.
Simple Interest, Compound interest, discount rate, force of interest, AV, PV
CAPM and Venture Capital
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