EZ-Credit, Inc., has ($40) million in consumer loans with an average interest rate of 13.5 percent. The
Question:
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.
Step by Step Answer:
Fundamentals Of Cost Accounting
ISBN: 0071332618
2nd Edition
Authors: William Lanen, Shannon Anderson