Question
Consider the following balance sheet for WatchoverU Savings Inc. ($ in millions): Assets Liabilities Floating-rate mortgages (currently 13% annually) $ 70 NOW accounts (currently 9%
Consider the following balance sheet for WatchoverU Savings Inc. ($ in millions):
| Assets | Liabilities | ||||
| Floating-rate mortgages (currently 13% annually) | $ | 70 | NOW accounts (currently 9% annually) | $ | 90 |
| 30-year fixed-rate loans (currently 10% annually) | 70 | time deposits (currently 9% annually) | 32 | ||
| Equity | 18 | ||||
| Total | $ | 140 | $ | 140 | |
| A. What is WatchoverUs expected net interest income at year-end? (Do not round intermediate calculations. Enter your answer in millions rounded to 1 decimal place. (e.g., 32.1)) Net Interest Income $ ______millions B. What will be the net interest income at year-end if interest rates rise by 1 percent? (Do not round intermediate calculations. Enter your answer in millions rounded to 1 decimal place. (e.g., 32.1)) Net Interest Income $ ____millions |
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Calculus Early Transcendentals
Authors: James Stewart
8th edition
978-1285741550
