Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Friendly Financial has $115 illion in consurner loans with an average interest rate of 10 percent. The bank also has $79 mion in horne equity
Friendly Financial has $115 illion in consurner loans with an average interest rate of 10 percent. The bank also has $79 mion in horne equity loans with an average interest rate of 8 percent. Finally, the company owns $23 million in corporate securities with an average rate or 7 percent. Managers at Friendly Financial estimate that next year its consumer loan portrollo will rise to $237 million and the interest rate will fall to 8 percent. They also estimate that its home equity loans will fall to $70 million with an average interest rate of 8 percent, and its corporate securities portolio wll Increase to $25 million with an average rate of 7 percent. Required: Estimate Friendly Financial's revenues for the coming year. (Enter your answer in thousands of dollars.) nterest revenue
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started