Question

A bank received an initial deposit of $15,000, kept a percentage of this money in reserve based on a reserve rate of 3%, and loaned 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 $50,000
B $45,000
C $500,000
D $19,500

Answer 1

c 500,000 is the answer for the boys

Answer 2

If this cycle continued indefinitely, how much money that eventually resulted from the initial deposit is

500,000 (C is the answer)