Calculating expected net interest income

Consider the following balance sheet

 

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ASSETS LIABILTIES

Floating-rate mortgages 75 6 month deposits 115

30 year fixed rate mtgs 125 5 year deposits 20

Equity 65

TOTAL 200 200

 

 

What is the expected net interest income over the next year?

 

Using the one year cumulative repricing gap model, what is expected net interest income for a 2% increase in rates?