Friendly Financial has $135 million in consumer loans with an average Interest rate of 12 percent....
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Friendly Financial has $135 million in consumer loans with an average Interest rate of 12 percent. The bank also has $95 million in home equity loans with an average Interest rate of 10 percent. Finally, the company owns $25 million in corporate securities with an average rate of 9 percent. Managers at Friendly Financial estimate that next year its consumer loan portfolio will rise to $305 million and the Interest rate will fall to 10 percent. They also estimate that its home equity loans will fall to $80 million with an average Interest rate of 9 percent, and Its corporate securities portfolio will increase to $26 million with an average rate of 8 percent. Required: Estimate Friendly Financial's revenues for the coming year. (Enter your answer in thousands of dollars.) Interest revenue Friendly Financial has $135 million in consumer loans with an average Interest rate of 12 percent. The bank also has $95 million in home equity loans with an average Interest rate of 10 percent. Finally, the company owns $25 million in corporate securities with an average rate of 9 percent. Managers at Friendly Financial estimate that next year its consumer loan portfolio will rise to $305 million and the Interest rate will fall to 10 percent. They also estimate that its home equity loans will fall to $80 million with an average Interest rate of 9 percent, and Its corporate securities portfolio will increase to $26 million with an average rate of 8 percent. Required: Estimate Friendly Financial's revenues for the coming year. (Enter your answer in thousands of dollars.) Interest revenue
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To estimate Friendly Financials revenues for the coming year we need to calculate the interest reven... View the full answer
Related Book For
Fundamentals of Cost Accounting
ISBN: 978-1259969478
6th edition
Authors: William N. Lanen, Shannon Anderson, Michael W Maher
Posted Date:
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