Macon Bank has interest revenues of $5 million, interest expenses of $4 million, and assets totaling $20 million. Macon Bank's net interest margin is

Name: Macon Bank has interest revenues of $5 million, interest expenses of $4 million, and assets totaling $20 million. Macon Bank's net interest margin is
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Net interest margin is calculated as (Interest Revenues - Interest Expenses) / Assets. So, ($5 million - $4 million) / $20 million = $1 million / $20 million = 0.05 or 5 percent.

Macon Bank Has Interest Revenues of $5 Million, Interest Expenses