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Juli2301 [7.4K]
2 years ago
12

A bank received an initial deposit of $12,000, kept a percentage of this money in reserve based on a reserve rate of 6%, and loa

ned out the rest. The amount it loaned out eventually was all deposited back into the bank. If this cycle continued indefinitely, how much money eventually resulted from the initial deposit?
A. $200,000
B. $72,000
C. $19,200
D. $20,000
Mathematics
1 answer:
blondinia [14]2 years ago
4 0
200,000 is the answer
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