1. What will be the FI's net interest income at year-end if interest rates do not change?

2. Suppose short-term interest rates increase by 1 percent. Calculate the change in net interest income after the interest rate increase.

can someone please solve these two questions with step-by-step solution.

Amount Rate $35,000,000 10 % Rate 8% Assets Rate Sensitive Fixed Rate Non-earning Liabilities Amount Rate $40,000,000 Sensitive Fixed Rate $12,000,000 Equity $ 8,000,000 9% 7 $21,000,000 $ 4,000,000