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Please help explain the following question in the screenshot. Thank you!Manheim Savings Bank ( In million $ ) Assets Liabilities Floating Rate Mortgage Loans $

Please help explain the following question in the screenshot. Thank you!Manheim Savings Bank (In million $)
Assets Liabilities
Floating Rate Mortgage Loans $50 Demand Deposits $70
(currently 10% p.a.)(currently 6% p.a.)
30-year Fixed rate Loans $50 Time Deposits $20
(currently 7% p.a.)(currently 6% p.a.)
Equity $10
a. What is Savings Banks expected net interest income at year-end?
b. What will be the net interest income at year-end if interest rates rise by 2%?
c. Using the cumulative repricing gap model, what is the expected net interest income for a 2% increase in interest rates?
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