Find what is the bank net interest margin

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Problem 1: The Prime Bank had interest income of $85 million and noninterest income of $10 million. This bank also had interest expenses of $30 million and noninterest expenses of $25 million. This bank's provision for loan losses is $5 million and taxes are $5 million. This bank has total assets of $1000 million and has equity capital totaling 15 percent of total assets. What is this bank's net interest margin (use total assets as earning assets)?

Option 1: 5.5 percent

Option 2: 3.0 percent

Option 3: -1.5 percent

Option 4: 15 percent

Option 5: None of the above

Reference no: EM132811711

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