(Revenue budget) In 2006, the Teachers’ Credit Union (TCU) had $2,000,000 in business loans at an average interest rate of 5.5 percent as well as $1,600,000 in consumer loans with an average rate of 10 percent. The credit union also has $500,000 invested in government securities that pay interest at an average rate of 2 percent.

For 2007, TCU estimates that its business loan portfolio will rise to $3,000,000, and the interest rate will rise to 6.5 percent. It projects that con¬ sumer loans will be $2,000,000 and have an average interest rate of 13 per¬ cent. The credit union’s government security investment will be $800,000 and will bear an average interest rate of 3.5 percent. What is TCU’s pro¬ jected revenue for 2006?

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