Financial instruments for which fair value does not approximate carrying value Loans The majority of the Firm’s loans are not carried at fair value on a recurring basis on the Consolidated balance sheets nor are they actively traded.
The following describes the inputs and assumptions that the Firm considers in arriving at an estimate of fair value for the following portfolios of loans.
Wholesale Fair value for the wholesale loan portfolio is estimated, primarily using the cost of credit derivatives, which is adjusted to account for the differences in recovery rates between bonds, upon which the cost of credit derivatives is based, and loans.
Consumer ?
Fair values for consumer installment loans (including automobile financings and consumer real estate), for which market rates for comparable loans are readily available, are based upon discounted cash flows adjusted for prepayments.
The discount rate used for consumer installment loans are based on the current market rates adjusted for credit, liquidity and other risks that are applicable to a particular asset class.  ?
Fair value for credit card receivables is based upon discounted expected cash flows.
The discount rates used for credit card receivables incorporate only the effects of interest rate changes, since the expected cash flows already reflect an adjustment for credit risk.
Interest-bearing deposits Fair values of interest-bearing time deposits are estimated by dis counting cash flows using the appropriate market rates for the applicable maturity.
Long-term debt related instruments Fair value for long-term debt, including the junior subordinated deferrable interest debentures held by trusts that issued guaranteed capital debt securities, is based upon current market rates and is adjusted for JPMorgan Chase’s credit quality.
Lending-related commitments The majority of the Firm’s unfunded lending-related commitments are not carried at fair value on a recurring basis on the Consolidated balance sheets nor are they actively traded.
Although there is no liquid secondary market for wholesale commitments, the Firm estimates the fair value of its wholesale lending-related commitments primarily using the cost of credit derivatives (which is adjusted to account for the difference in recovery rates between bonds, upon which the cost of credit derivatives is based, and loans) and loan equivalents (which represent the portion of an unused commitment expected, based upon the Firm’s average portfolio historical experience, to become outstanding in the event an obligor defaults).
The Firm estimates the fair value of its consumer commitments to extend credit based upon the primary market prices to originate new commitments.
It is the change in current primary market prices that provides the estimate of the fair value of these commitments.
On this basis, the estimated fair value of the Firm’s lending-related commitments at December 31, 2007 and 2006, was a liability of $1.9 billion and $210 million, respectively.
The following table presents the carrying value and estimated fair value of financial assets and liabilities as required by SFAS 107.
## Table 0 ##
Notes to consolidated financial statements 236 JPMorgan Chase & Co. /2010 Annual Report The table below sets forth the accretable yield activity for the Firm’s PCI consumer loans for the years ended December 31, 2010, 2009 and 2008.
## Table 1 ##
(a) Other changes in expected cash flows may vary from period to period as the Firm continues to refine its cash flow model and periodically updates model assumptions.
For the years ended December 31, 2010 and 2009, other changes in expected cash flows were principally driven by changes in prepayment assumptions, as well as reclassification to the nonaccretable difference.
Such changes are expected to have an insignificant impact on the accretable yield percentage.
The factors that most significantly affect estimates of gross cash flows expected to be collected, and accordingly the accretable yield balance, include: (i) changes in the benchmark interest rate indices for variable rate products such as option ARM and home equity loans; and (ii) changes in prepayment assumptions.
To date, the decrease in the accretable yield percentage has been primarily related to a decrease in interest rates on vari able-rate loans and, to a lesser extent, extended loan liquidation periods.
Certain events, such as extended loan liquidation periods, affect the timing of expected cash flows but not the amount of cash expected to be received (i. e. , the accretable yield balance).
Extended loan liquidation periods reduce the accretable yield percentage because the same accretable yield balance is recognized against a higher-than-expected loan balance over a longer-than-expected period of time.
Management’s discussion and analysis creating governance over assumptions and establishing and monitoring limits for structural interest rate risk.
The Firm manages structural interest rate risk generally through its investment securities portfolio and related derivatives.
The Firm evaluates its structural interest rate risk exposure through earnings-at-risk, which measures the extent to which changes in interest rates will affect the Firm’s core net interest income (see page 83 of this Annual Report for further discussion of core net interest income) and interest rate-sensitive fees.
Earnings-at-risk excludes the impact of trading activities and MSR, as these sensitivities are captured under VaR.
The Firm conducts simulations of changes in structural interest rate-sensitive revenue under a variety of interest rate scenarios.
Earnings-at-risk scenarios estimate the potential change in this revenue, and the corresponding impact to the Firm’s pretax core net interest income, over the following 12 months, utilizing multiple assumptions as described below.
These scenarios highlight exposures to changes in interest rates, pricing sensitivities on deposits, optionality and changes in product mix.
The scenarios include forecasted balance sheet changes, as well as prepayment and reinvestment behavior.
Mortgage prepayment assumptions are based on current interest rates compared with underlying contractual rates, the time since origination, and other factors which are updated periodically based on historical experience.
JPMorgan Chase’s 12-month pretax core net interest income sensitivity profiles.
(Excludes the impact of trading activities and MSRs)
## Table 2 ##
(a) Instantaneous changes in interest rates present a limited view of risk, and so alternative scenarios are also reviewed.
(b) Downward 100- and 200-basis-points parallel shocks result in a federal funds target rate of zero and negative three- and six-month treasury rates.
The earnings-at-risk results of such a low-probability scenario are not meaningful.
The change in earnings-at-risk from December 31, 2012, resulted from higher expected deposit balances, partially offset by repositioning the investment securities portfolio.
The Firm’s benefit to rising rates is largely a result of reinvesting at higher yields and assets re-pricing at a faster pace than deposits.
Additionally, another interest rate scenario used by the Firm — involving a steeper yield curve with long-term rates rising by 100 basis points and short-term rates staying at current levels — results in a 12-month pretax core net interest income benefit of $407 million.
The increase in core net interest income under this scenario reflects the Firm reinvesting at the higher long-term rates, with funding costs remaining unchanged.
Risk monitoring and control Limits Market risk is controlled primarily through a series of limits set in the context of the market environment and business strategy.
In setting limits, the Firm takes into consideration factors such as market volatility, product liquidity and accommodation of client business and management experience.
The Firm maintains different levels of limits.
Corporate level limits include VaR and stress limits.
Similarly, line of business limits include VaR and stress limits and may be supplemented by loss advisories, nonstatistical measurements and profit and loss drawdowns.
Limits may also be allocated within the lines of business, as well at the portfolio level.
Limits are established by Market Risk in agreement with the lines of business.
Limits are reviewed regularly by Market Risk and updated as appropriate, with any changes approved by lines of business management and Market Risk.
Senior management, including the Firm’s Chief Executive Officer and Chief Risk Officer, are responsible for reviewing and approving certain of these risk limits on an ongoing basis.
All limits that have not been reviewed within specified time periods by Market Risk are escalated to senior management.
The lines of business are responsible for adhering to established limits against which exposures are monitored and reported.
Limit breaches are required to be reported in a timely manner by Risk Management to limit approvers, Market Risk and senior management.
In the event of a breach, Market Risk consults with Firm senior management and lines of business senior management to determine the appropriate course of action required to return to compliance, which may include a reduction in risk in order to remedy the excess.
Any Firm or line of business-level limits that are in excess for three business days or longer, or that are over limit by more than 30%, are escalated to senior management and the Firmwide Risk Committee.

Tables referenced above, in order (Table 0 first):
<table><tr><td></td><td colspan="3">2007</td><td colspan="3">2006</td></tr><tr><td>December 31, (in billions)</td><td>Carrying value<sup></sup></td><td>Estimated fair value</td><td>Appreciation/ (depreciation)</td><td>Carrying value</td><td>Estimated fair value</td><td>Appreciation/ (depreciation)</td></tr><tr><td> Financial assets</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Assets for which fair value approximates carrying value</td><td>$160.6</td><td>$160.6</td><td>$—</td><td>$150.5</td><td>$150.5</td><td>$—</td></tr><tr><td>Federal funds sold and securities purchased under resale agreements (included $19.1 at fair value at December 31, 2007)</td><td>170.9</td><td>170.9</td><td>—</td><td>140.5</td><td>140.5</td><td>—</td></tr><tr><td>Trading assets</td><td>491.4</td><td>491.4</td><td>—</td><td>365.7</td><td>365.7</td><td>—</td></tr><tr><td>Securities</td><td>85.4</td><td>85.4</td><td>—</td><td>92.0</td><td>92.0</td><td>—</td></tr><tr><td>Loans</td><td>510.1</td><td>510.7</td><td>0.6</td><td>475.8</td><td>480.0</td><td>4.2</td></tr><tr><td>Mortgage servicing rights at fair value</td><td>8.6</td><td>8.6</td><td>—</td><td>7.5</td><td>7.5</td><td>—</td></tr><tr><td>Other (included $22.2 at fair value at December 31, 2007)</td><td>66.6</td><td>67.1</td><td>0.5</td><td>54.3</td><td>54.9</td><td>0.6</td></tr><tr><td> Total financial assets</td><td>$1,493.6</td><td>$1,494.7</td><td>$1.1</td><td>$1,286.3</td><td>$1,291.1</td><td>$4.8</td></tr><tr><td> Financial liabilities</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Deposits (included $6.4 at fair value at December 31, 2007)</td><td>$740.7</td><td>$741.3</td><td>$-0.6</td><td>$638.8</td><td>$638.9</td><td>$-0.1</td></tr><tr><td>Federal funds purchased and securities sold under repurchase agreements (included $5.8 at fair value at December 31, 2007)</td><td>154.4</td><td>154.4</td><td>—</td><td>162.2</td><td>162.2</td><td>—</td></tr><tr><td>Commercial paper</td><td>49.6</td><td>49.6</td><td>—</td><td>18.8</td><td>18.8</td><td>—</td></tr><tr><td>Other borrowed funds (included $10.8 at fair value at December 31, 2007)</td><td>28.8</td><td>28.8</td><td>—</td><td>18.1</td><td>18.1</td><td>—</td></tr><tr><td>Trading liabilities</td><td>157.9</td><td>157.9</td><td>—</td><td>148.0</td><td>148.0</td><td>—</td></tr><tr><td>Accounts payable, accrued expense and other liabilities</td><td>89.0</td><td>89.0</td><td>—</td><td>82.5</td><td>82.5</td><td>—</td></tr><tr><td>Beneficial interests issued by consolidated VIEs (included $3.0 at fair value at December 31, 2007)</td><td>14.0</td><td>13.9</td><td>0.1</td><td>16.2</td><td>16.2</td><td>—</td></tr><tr><td>Long-term debt and Junior subordinated deferrable interest debentures (included $70.5 and $25.4 at fair value atDecember 31, 2007 and 2006, respectively)</td><td>199.0</td><td>198.7</td><td>0.3</td><td>145.6</td><td>147.1</td><td>-1.5</td></tr><tr><td> Total financial liabilities</td><td>$1,433.4</td><td>$1,433.6</td><td>$-0.2</td><td>$1,230.2</td><td>$1,231.8</td><td>$-1.6</td></tr><tr><td> Net appreciation</td><td></td><td></td><td>$0.9</td><td></td><td></td><td>$3.2</td></tr></table>
<table><tr><td>Year ended December 31,</td><td>Total PCI</td></tr><tr><td>(in millions, except ratios)</td><td>2010</td><td>2009</td><td>2008</td></tr><tr><td>Balance, January 1</td><td>$25,544</td><td>$32,619</td><td>$—</td></tr><tr><td>Washington Mutual acquisition</td><td>—</td><td>—</td><td>39,454</td></tr><tr><td>Accretion into interest income</td><td>-3,232</td><td>-4,363</td><td>-1,292</td></tr><tr><td>Changes in interest rates on variable rate loans</td><td>-819</td><td>-4,849</td><td>-5,543</td></tr><tr><td>Other changes in expected cash flows<sup>(a)</sup></td><td>-2,396</td><td>2,137</td><td>—</td></tr><tr><td>Balance, December 31</td><td>$19,097</td><td>$25,544</td><td>$32,619</td></tr><tr><td>Accretable yield percentage</td><td>4.35%</td><td>5.14%</td><td>5.81%</td></tr></table>
<table><tr><td></td><td colspan="5">Instantaneous change in rates<sup>(a)</sup></td><td></td></tr><tr><td>(in millions)</td><td>+200 bps</td><td>+100 bps</td><td colspan="2">-100 bps</td><td colspan="2">-200 bps</td></tr><tr><td>December 31, 2013</td><td>$4,718</td><td>$2,518</td><td>NM</td><td><sup>(b)</sup></td><td>NM</td><td><sup>(b)</sup></td></tr><tr><td>December 31, 2012</td><td>3,886</td><td>2,145</td><td>NM</td><td><sup>(b)</sup></td><td>NM</td><td><sup>(b)</sup></td></tr></table>

Question: What will Loans for Carrying value be like in 2008 if it develops with the same increasing rate as current? (in billion)
Answer: 546.873
Reasoning program: subtract(510.1,475.8), divide(#0,475.8), add(const_1,#1), multiply(510.1,#2)