Suppose a bank has $100 million in assets, and $90 million in liabilities. If assets increase...

Suppose a bank has $100 million in assets, and $90 million in liabilities. If assets increase 5%, and liabilites increase 10%, then how much did bank’s equity change? (Answer is 6.0) please show me how with work!!!

Solutions

Expert Solution

Bank's Equity is the excess of Bank's Assets over its Liabilities

Particulars	Before Change	After Change
Assets	$ 100	$ 105
Liabilities	$ 90	$ 99
Bank's Equity	$ 10	$ 6

The Bank's equity decreases to $6 million.

ekkarill92 answered 1 year ago

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