The next eleven (including this) questions will use the following information:

NewBank started its first day of operations with $6 million in capital. $100 million in checkable deposits is received. The bank issues a $25 million commercial loan and another $25 million in mortgages, with the following terms:

Mortgages: 100 standard 30-year fixed-rate mortgages with a nominal annual rate of 5.25% each for $250,000.

Commercial loan: 3-year loan, simple interest paid monthly at 0.75% per month

1. If required reserves are 8%, how much required reserves does the bank have? Please answer in millions of dollars.

2. What are total assets of the bank based on the first-day information (ie after they make the loans and received the deposits)? Please answer in millions of dollars