Consider the following income statement for WatchoverU Savings Inc. (in millions):

Assets

Liabilities

Floating-rate mortgages (currently 12% annually)

$

61

NOW accounts (currently 8% annually)

$

81

30-year fixed-rate loans (currently 9% annually)

61

Time deposits (currently 8% annually)

29

Equity

12

Total

$

122

$

122

a.	What is WatchoverUs expected net interest income at year-end? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places. (e.g., 32.16))

Net interest income

$ million

b.	What will be the net interest income at year-end if interest rates rise by 3 percent? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places. (e.g., 32.16))

Net interest income

$ million