Question

Last year Debra opened an investment account with $5600 at the end of the year, the amount in the account had increased by 29%

(A) Year-end amount= _ x Original amount
(B) Year-end amount: $

Answer 1

The bank's T-account balance sheet lists its assets which include reserves, government bonds, and loans, and its liabilities which consist of deposits. The difference between the total assets and liabilities gives a net worth of $220.

Step-by-step explanation:

To set up a T-account balance sheet for the bank, we need to list the bank's assets and liabilities. The difference between the total assets and total liabilities gives us the bank's net worth.

The bank's assets include its reserves, government bonds, and the loans it has made. The liabilities are the deposits held by the bank's customers. Below is how the T-account would look:

• Assets
  • Reserves: $50
  • Government Bonds: $70
  • Loans: $500
• Liabilities
  • Deposits: $400
• Net Worth
  • Total Assets ($50 + $70 + $500) = $620
  • Total Liabilities ($400) = $400
  • Net Worth (Total Assets - Total Liabilities) = $620 - $400 = $220

Thus, the bank's net worth is calculated to be $220.