(Exercise 8-18 (Algorithmic)

Revenue budget

In 2013, Grand Falls Bank (GFB) had $3,889,000 in business loans at an average interest rate of 4.0 percent as well as $2,913,000 in consumer loans with an average rate of 8.5 percent. GFB also has $707,000 invested in government securities that pay interest at an average rate of 2.4 percent.

For 2014, GFB estimates that the volume of business loans will increase to $6,317,000, and the interest rate will rise to 5.3 percent. It projects that consumer loans will be $3,730,000 and have an average interest rate of 10.5 percent. The bank's government security investment will be $1,339,000 and will bear an average interest rate of 4.4 percent. What is GFB's projected revenue for 2014? $ ________

(Please show steps for answering question)