If the required reserve ratio is 12.5 %, then the maximum additional amount this bank lend is $0 $10,000 $15,000 $20,000

First step is to get rid of the square root. remember that a square root is the same as raising to the (1/2) power. see below: multiply exponents per exponent rules to get: remember you subtract exponents from the denominator and add exponents in the numerator so: simplify further: so a is the correct choice. if you don't understand this google exponent rules and it will you understand. look at the image results.