Equitable Finance Company has a following financial statement for the current year.

Question: What will be the change in net worth if the interest rates fall from 5% to 4%?

Net worth will increase by $404,761.90

Net worth will increase by $533,333.33

Net worth will increase by $227,142.86

Net worth will decrease by $1,171,428.57

Net worth will decrease by $227,142.86

Net worth will increase by $1,171,428.57

Net worth will decrease by $533,333.33

Net worth will decrease by $404,761.90

Assets Liabilities Amount Duration Amount Duration Commercial Cash and deposits $4,000,000.00 0 $45,000,000.00 0.3 paper Securities Bank loans Less than Less than $6,000,000.00 0.5 $5,000,000.00 0.6 1 year 1 year Greater than 1 Greater than 1 $2,000,000.00 5 $30,000,000.00 3 year year Consumer loans Long-term bonds and other $10,000,000.00 long-term debt 8 Less than 1 year $55,000,000.00 0.2 Greater than 1 $30,000,000.00 4 Capital $10,000,000.00 year Physical capital $3,000,000.00 o Total $100,000,000.00 Total $100,000,000.00