Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Adair Credit, Inc. has $53.0 million in consumer loans with an average interest rate of 11.0%. The company has $48.0 million in home equity loans

image text in transcribed
Adair Credit, Inc. has $53.0 million in consumer loans with an average interest rate of 11.0%. The company has $48.0 million in home equity loans with an average interest rate of 7.0%, and owns $6.0 million in corporate securities with an average interest rate of 5%. Next year, consumer loans are estimated to increase to $58.0 million because of a rate decrease to 9.0%, while home equity loans are estimated to increase to $50.0 million at an average interest rate of 5.5%. Unfortunately, the investment in corporate securities is estimated to decrease by 15% and the average interest rate is estimated to be 8.0%. What is Adair's estimated change in revenues next year? Multiple Choice 0 $1,112,000 decrease. O 0 $1,434,722 increase 0 $112.000 increase 0 $.434 222 cecrease

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial And Managerial Accounting Information For Decisions

Authors: John Wild, Ken Shaw, Barbara Chiappetta

7th Edition

1259726703, 9781259726705

More Books

Students also viewed these Accounting questions

Question

How would you rate Hsiehs leadership using the Leadership Grid?

Answered: 1 week ago