The Average Duration of the Loans Is 10 Years What Is the Change in the Value of the FI's

Multiple Choice

The average duration of the loans is 10 years.The average duration of the deposits is 3 years. $$\begin{array} { | l | r | l | r | } \hline \text { Consumer loans } & \$ 50 \text { million } & \text { Deposits } & \$ 235 \text { million } \\\hline \text { Commercial Loans } & \$ 200 \text { million } & \text { Equity } & \$ 15 \text { million } \\\hline \text { Total Assets } & \$ 250 \text { million } & \text { Total Liabilities \& Equity } & \$ 250 \text { million } \\\hline\end{array}$$ What is the change in the value of the FI's equity for a 1 percent increase in interest rates from the current rates of 10 percent ?

A) -$,979,091.
B) -$16,318,182.
C) -$15,979,091.
D) +$16,318,182.
E) +$979,091.