1. Metrobank offers one-year loans with a 13 percent stated rate, charges a 1/5 percent loan origination fee, imposes a 9 percent compensating balance requirement, and must pay a 4 percent reserve requirement to the Federal Reserve. What is the return to the bank on these loans?
2. XYZ Corporation has sales of 200,000 units at $15 per unit last year. The Marketing Manager projects a 25% increase in unit volume sales this year with a 5% price decrease due to a price reduction by a major competitor. Returned merchandise will represent 4% of total sales. What is the company's net dollar sales productions for this year? Please show all work.