7. NewBank started its first day of operations with $6 million in capital. $100 million in checkable

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7. NewBank started its first day of operations with $6 million in capital. $100 million in checkable deposits is received. The bank issues a $25 million commercial loan and another $25 million in mort- gages, with the following terms: Mortgages: 100 standard 30-year fixed-rate mortgages with a nominal annual rate of 5.25% each for $250,000 Commercial loan: 3-year loan, simple interest paid monthly at 0.75% per month If required reserves are 8%, what does the bank balance sheets look like? Ignore any loan loss reserves.

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