Question

Neptune financial bank has deposits of $720 million. it holds reserves of $30 million and has purchased government bonds worth $250 million. the bank's loans, if sold at current market value, would be worth $720 million. what is neptune financials net worth? group of answer choices

O $280 million
O $750 million
O $150 million
O $1 billion

Answer 1

The net worth of Neptune Financial Bank is calculated by subtracting its total liabilities from its total assets, resulting in a net worth of $280 million, which is the correct option from the given choices.

Step-by-step explanation:

Calculating the net worth of Neptune Financial Bank involves subtracting the bank's total liabilities from its total assets. According to the information provided, the bank's assets include reserves of $30 million, government bonds worth $250 million, and loans that could be sold for $720 million. Hence, the total assets equal $1 billion ($30 million + $250 million + $720 million).

The only liability mentioned is the bank's deposits, which total $720 million. To find the net worth, we simply subtract the total liabilities from the total assets:

Net Worth = Total Assets - Total Liabilities

Net Worth = $1 billion - $720 million

Net Worth = $280 million.

Therefore, the correct option in the final answer, representing Neptune Financial Bank's net worth, is $280 million.