Axtell Credit Union elects to draw upon the following new sources of funds to support the $40 million in new automobile loan requests it is expecting from its customers next week:
If only 80 percent of the total of new funds raised will actually be available for making new auto loans, what is the minimum rate of return Axtell must earn in order to at least break even on these new loans?

Question

Axtell Credit Union elects to draw upon the following new sources of funds to support the $40 million in new automobile loan requests it is expecting from its customers next week:
  If only 80 percent of the total of new funds raised will actually be available for making new auto loans, what is the minimum rate of return Axtell must earn in order to at least break even on these new loans?

Quizplus · Accepted Answer

The Answer of Axtell Credit Union elects to draw upon the following new sources of funds to support the $40 million in new automobile loan requests it is expecting from its customers next week:
  If only 80 percent of the total of new funds raised will actually be available for making new auto loans, what is the minimum rate of return Axtell must earn in order to at least break even on these new loans?

Axtell Credit Union Elects to Draw Upon the Following New