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Consider the following income statement for WatchoverU Savings Inc. (in millions): Assets Liabilities Floating-rate mortgages (currently 14% annually) $ 68 NOW accounts (currently 10% annually)

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

Assets Liabilities
Floating-rate mortgages (currently 14% annually) $ 68 NOW accounts (currently 10% annually) $ 88
30-year fixed-rate loans (currently 11% annually) 68 Time deposits (currently 10% annually) 38
Equity 10
Total $ 136 $ 136
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

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