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1) Farmville Financial reports a net interest margin of 2.75% in its most recent financial report, with total interest revenue of $95 million and total
1) Farmville Financial reports a net interest margin of 2.75% in its most recent financial report, with total interest revenue of $95 million and total interest cost of $82 million. What volume of earning assets must the bank hold? Suppose the banks interest revenues rise by 5% and interest cost and earning assets increase 9%. What will happen to Farmvilles net interest margin? What is the formula to calculate earnings assets?
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