The question seems to ask about the financial metric 'Net Interest Margin (NIM),' but contains typographical errors. NIM measures the difference between interest earned and interest paid, divided by the total earning assets, represented as a percentage. The steps to calculate NIM have been outlined but specific numerical values are required for an actual calculation.
The question seems to be asking about the concept of Net Interest Margin (NIM), which is a financial metric predominantly used to measure the profitability of banks and lending institutions. However, the question is not very clear and seems to include typographical errors. Yet, I will explain the concept of NIM in the context of finance. NIM is calculated by subtracting the interest paid on loans (the cost of funds) from the interest received on loans (the income generated), and then dividing the result by the total amount of earning assets. This ratio is generally expressed as a percentage and indicates how well a financial institution is managing its investment and loan strategies compared to its interest expenses.
Steps to Calculate NIM
- Determine the interest income earned on loans and investments.
- Calculate the interest expenses incurred on deposits and borrowed funds.
- Subtract the interest expenses from the interest income to find the net interest income.
- Divide the net interest income by the average earning assets.
- Multiply the result by 100 to convert it to a percentage.
Without specific numerical values, it's not possible to calculate the actual NIM for the given question. If numerical values for interest income, interest expenses, and total earning assets were provided, we could apply the formula described above.