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RGV banks cash flows from assets (loans) and liabilities (deposits) are as follows: Expected Cash Inflows from Assets Expected Cash Outflows from Liabilities Annual Period

RGV banks cash flows from assets (loans) and liabilities (deposits) are as follows:

Expected Cash Inflows from Assets

Expected Cash Outflows from Liabilities

Annual Period in Which Cash Receipts Are Expected

$550

$500

1

600

650

2

700

500

3

If interest rates suddenly climb from 10% to 12%, what change will occur in the value of RGV banks net worth? (2 points)

250,680

-205,354

+5.2 Millions

+150,857

-1.5 Millions

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