Explanation:
The correct answer is A.
Net interest margin (NIM) = Net interest incomeTotal earning assets\frac{\text{Net interest income}}{\text{Total earning assets}}Total earning assetsNet interest income
Net Interest Margin = \frac{\`83 - \72`}{\`942`} = 0.011677 \approx 1.17%$
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Q.4228 Bright Bank posted the following financial entries:
$83
$72
$942
Calculate the bank’s net interest margin.
A
1.17%
B
1.56%
C
2.25%
D
4.78%