Bank of the Atlantic Has Liabilities of $4 Million with an Average

question 85

Multiple Choice

Bank of the Atlantic has liabilities of $4 million with an average maturity of two years paying interest rates of 4.0 percent annually.It has assets of $5 million with an average maturity of 5 years earning interest rates of 6.0 percent annually.What is the bank's net interest income in dollars in year 3,if it refinances all of its liabilities at a rate of 8.0 percent?

• A)-$20,000.
• B)-$10,000.
• C)-$15,000.
• D)+$20,000.

---

Definitions:

Instant Help

Quick access to documentation or support within a software application to assist users with questions or problems.

Indexing

A process used to speed up searches, queries, and retrieval of information by creating an efficient database structure.

Index

A list or compilation of terms, names, or subjects ordered alphabetically at the end of a book, typically with page number references.

Taskbar

A bar at the bottom of a computer screen that offers quick access to open programs and provides notifications.