Calculate the Total Amount of Money "Created" from a Deposit

question 26

Short Answer

Calculate the total amount of money "created" from a deposit of $5,000 as it moves through four cycles of deposit. Assume a reserve rate of 15 percent. (Round answer to nearest two decimal places.)

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Definitions:

Immediate Feedback

Quick response or reaction received shortly after an action or communication, crucial for real-time adjustments and learning.

Permanent Record

Information or data about an individual or event that is stored indefinitely and can have a lasting impact on one's reputation or opportunities.

Tourism Brochure

A printed or digital document that provides descriptive information, images, and details about tourist destinations, attractions, and services.

Bahamas

A country consisting of more than 700 islands, cays, and islets in the Atlantic Ocean, known for its tropical climate and beautiful beaches.