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Exercise 13-27 (Algo) Estimate Sales Revenues (LO 13-2) Gladys Bank and Trust has $390 million in consumer loans with an average interest rate of 7.55
Exercise 13-27 (Algo) Estimate Sales Revenues (LO 13-2) Gladys Bank and Trust has $390 million in consumer loans with an average interest rate of 7.55 percent. The bank also has $270 million in home equity loans with an average interest rate of 5 percent. Finally, the company owns $90 million in government securities with an average rate of 3 percent. Managers at Gladys Bank and Trust estimate that next year its consumer loan portfolio will fall to $350 million and the interest rate will increase to 9.05 percent. They also estimate that its home equity loans will increase to $310 million with an average interest rate of 7 percent, and its government securities portfolio will increase to $105 million with an average rate of 9.50 percent. Required: Estimate the revenues for the coming year for Gladys Bank and Trust. Note: Enter your answer in thousands of dollars
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