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Question
The Third National Bank of Edmond reports a net interest margin of 5.83 percent. It has total interest revenues of $275 million and total interest expenses of $210 million. This bank has earnings assets of $1,115. Suppose this bank's interest revenues rise by 8 percent and its interest expenses and earnings assets rise by 10 percent next year, what is this bank's new net interest margin?
A. 5.83 percent
B. 7.09 percent
C. 3.59 percent
D. 5.38 percent
E. 7.80 percent
Answer
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