Net interest margin is also known as net yield on interest-earning.pdf
Net interest margin is also known as \"net yield on interest-earning assets. The formula for net interest margin is: Net Interest Margin = (Interest Received - Interest Paid) / Average Invested Assets In the following case:- Interest Received :- 1) On securities--$30million*3%=$0.9 million 2) On loan given--$70milion*6%=$4.2million Interest Paid:- On loan taken-- $100miillion*3%=$3million Avereage invested asset= $100 million Therefore, Net Interest Margin = ( $5.1million- $3million) / $100million=0.021 or 2.1% Solution Net interest margin is also known as \"net yield on interest-earning assets. The formula for net interest margin is: Net Interest Margin = (Interest Received - Interest Paid) / Average Invested Assets In the following case:- Interest Received :- 1) On securities--$30million*3%=$0.9 million 2) On loan given--$70milion*6%=$4.2million Interest Paid:- On loan taken-- $100miillion*3%=$3million Avereage invested asset= $100 million Therefore, Net Interest Margin = ( $5.1million- $3million) / $100million=0.021 or 2.1%.
Net interest margin is also known as net yield on interest-earning.pdf
Net interest margin is also known as \"net yield on interest-earning assets. The formula for net interest margin is: Net Interest Margin = (Interest Received - Interest Paid) / Average Invested Assets In the following case:- Interest Received :- 1) On securities--$30million*3%=$0.9 million 2) On loan given--$70milion*6%=$4.2million Interest Paid:- On loan taken-- $100miillion*3%=$3million Avereage invested asset= $100 million Therefore, Net Interest Margin = ( $5.1million- $3million) / $100million=0.021 or 2.1% Solution Net interest margin is also known as \"net yield on interest-earning assets. The formula for net interest margin is: Net Interest Margin = (Interest Received - Interest Paid) / Average Invested Assets In the following case:- Interest Received :- 1) On securities--$30million*3%=$0.9 million 2) On loan given--$70milion*6%=$4.2million Interest Paid:- On loan taken-- $100miillion*3%=$3million Avereage invested asset= $100 million Therefore, Net Interest Margin = ( $5.1million- $3million) / $100million=0.021 or 2.1%.
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Net interest margin is also known as net yield on interest-earning.pdf
- 1. Net interest margin is also known as "net yield on interest-earning assets. The formula for net interest margin is: Net Interest Margin = (Interest Received - Interest Paid) / Average Invested Assets In the following case:- Interest Received :- 1) On securities--$30million*3%=$0.9 million 2) On loan given--$70milion*6%=$4.2million Interest Paid:- On loan taken-- $100miillion*3%=$3million Avereage invested asset= $100 million Therefore, Net Interest Margin = ( $5.1million- $3million) / $100million=0.021 or 2.1% Solution Net interest margin is also known as "net yield on interest-earning assets. The formula for net interest margin is: Net Interest Margin = (Interest Received - Interest Paid) / Average Invested Assets In the following case:- Interest Received :- 1) On securities--$30million*3%=$0.9 million 2) On loan given--$70milion*6%=$4.2million Interest Paid:- On loan taken-- $100miillion*3%=$3million Avereage invested asset= $100 million Therefore, Net Interest Margin = ( $5.1million- $3million) / $100million=0.021 or 2.1%