Question

A bank efficiency ratio is the ratio of a bank's expenses to its revenue, expressed as a percentage. If a bank has \$222$222dollar sign, 222 million dollars in expenses and an efficiency ratio of 75\%75%75, percent, what is its revenue in millions of dollars?

Answer 1

Answer:

$296 million

Explanation:

Data provided in the question:

Expenses of the bank = $222 million

Efficiency ratio of the bank = 75%

Now,

The Efficiency ratio is given using the formula as:

Efficiency ratio = $\frac{\textup{Expenses}}{\textup{Revenue}}$

thus,

Revenue = $\frac{\textup{Expenses}}{\textup{Efficiency ratio}}$

on substituting the respective values, we get

Revenue = $\frac{\ \textup{222 million}}{\textup{75}\%}$

or

Revenue = $\frac{\ \textup{222 million}}{\textup{0.75}}$

or

Revenue = $296 million

Hence, the revenue for the bank is $296 million