EZ-Credit, Inc., has ($40) million in consumer loans with an average interest rate of 13.5 percent. The

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EZ-Credit, Inc., has \($40\) million in consumer loans with an average interest rate of 13.5 percent.

The bank also has \($32\) million in home equity loans with an average interest rate_of 9 percent.

Finally, the company owns \($6\) million in corporate securities with an average rate of 6 percent.

EZ-Credit estimates that next year its consumer loan portfolio will rise to \($42\) million and the interest rate will fall to 12 percent. Its home equity loans will fall to \($30\) million with an average interest rate of 8 percent, and its corporate securities portfolio will increase to \($8\) million with an average rate of 7 percent.

 Required 

Estimate EZ-Credit’s revenues for the coming year.

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Related Book For  book-img-for-question

Fundamentals Of Cost Accounting

ISBN: 0071332618

2nd Edition

Authors: William Lanen, Shannon Anderson

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