2. Following No. 1, Loan A and Loan B are floating-rate loans, which mean the annuities change with the market interest rates. Deposit A is also a floating rate deposit. Only on Deposit B the bank pays fixed rate 5.5% while the market interest rate becomes 7.65%. Hence, the Economic Value of Equity (E.V.E) is ( ) Loan A (9.65 %, 1 year) = $100 Deposit A (5.15%, 3 months) Loan B (12.65%,2 years) = $200 Deposit B (5.5%, 1 year) Total Assets = $100 = $? = $300 EVE =$? Total Liabilities & Equity = $300 e. $5 f. $6 g. $7 h. $8 1. $9 a. $1 b. $2 c. $3 d. $4 j.$10 2. Following No. 1, Loan A and Loan B are floating-rate loans, which mean the annuities change with the market interest rates. Deposit A is also a floating rate deposit. Only on Deposit B the bank pays fixed rate 5.5% while the market interest rate becomes 7.65%. Hence, the Economic Value of Equity (E.V.E) is ( ) Loan A (9.65 %, 1 year) = $100 Deposit A (5.15%, 3 months) Loan B (12.65%,2 years) = $200 Deposit B (5.5%, 1 year) Total Assets = $100 = $? = $300 EVE =$? Total Liabilities & Equity = $300 e. $5 f. $6 g. $7 h. $8 1. $9 a. $1 b. $2 c. $3 d. $4 j.$10