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Consider the following balance sheet for WatchoverU Savings Incorporated ($ in millions): ...

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Finance

Consider the following balance sheet for WatchoverU Savings Incorporated ($ in millions):

Assets Liabilities
Floating-rate mortgages (currently 14% annually) $ 56 NOW accounts (currently 10% annually) $ 76
30-year fixed-rate loans (currently 11% annually) 56 Time deposits (currently 10% annually) 24
Equity 12
Total $ 112 $ 112

a. What is WatchoverUs expected net interest income at year-end? b. What will be the net interest income at year-end if interest rates rise by 3 percent? (For all requirements, do not round intermediate calculations. Enter your answers in millions rounded to 2 decimal places. (e.g., 32.16))

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