Consider the following Income Statement for WatchOverU Savings (in millions)

Assets:

Floating Rate Mortgages (Currently 12% Annually): $66

30 Year Fixed Rate Loans (Currently 9% Annually): $66

Total: $132

Liabilities:

NOW Accounts (Currently 8% Annually): $86

Time Deposits: (Currently 8% Annually): $30

Equity: $16

Total: $132

What is WatchoverU's Expected Net Interest at Year End?

What will be the net interest income at year end if interest rates rise by 3%?