Explanation:

Net interest margin = $\frac{\text{Net interest income}}{\text{Total earning assets}}$
$0.0245 = \frac{(100 - 64) \text{ million}}{\text{Total earning assets}} $⇒ Total earning assets =$ \frac{(100 - 64) \text{ million}}{0.0245} $= `$ 1`,469.39$ million

Q.4232 Davidson Bank registered a net interest margin of 2.45% in its previous financial report, with total interest revenues of `$100` million and total interest expenses worth `$64` million. Compute the volume of the earning assets held by the bank.

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Last updated: July 5, 2026 at 07:08

$845.67 million

50.0%

$1,045.23 million

0.0%

$1,236.87 million

$1,469.39 million

50.0%

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Q.4232 Davidson Bank registered a net interest margin of 2.45% in its previous financial report, with total interest revenues of `$100` million and total interest expenses worth `$64` million. Compute the volume of the earning assets held by the bank.

Financial Risk Manager Part 2

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Q.4232 Davidson Bank registered a net interest margin of 2.45% in its previous financial report, with total interest revenues of $100 million and total interest expenses worth $64 million. Compute the volume of the earning assets held by the bank.

Q.4232 Davidson Bank registered a net interest margin of 2.45% in its previous financial report, with total interest revenues of `$100` million and total interest expenses worth `$64` million. Compute the volume of the earning assets held by the bank.