T7 KCT 5 (Tutorial)

Melbourne Bank has $220 million

in interest earning assets upon which it earns an average of 4%. Creditor

obligations sum to $320 million which on average costs 5%. The bank has total

assets of $350 million.

Calculate the net interest margin of the bank. 

(enter your answer as a pure number only with no $, no % and no commas, to 2 decimal places. not following this Moodle requirement can result in incorrect auto-marking)