Bank of the Atlantic Has Liabilities of $4 Million with an Average

Multiple Choice

Bank of the Atlantic has liabilities of $4 million with an average maturity of two years paying interest rates of 4.0 percent annually.It has assets of $5 million with an average maturity of 5 years earning interest rates of 6.0 percent annually.What is the bank's net interest income in dollars in year 3, if it refinances all of its liabilities at a rate of 8.0 percent?

A) -$20,000.
B) -$10,000.
C) -$15,000.
D) +$20,000.
E) +$10,000.