Answered step by step
Verified Expert Solution
Link Copied!

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

image text in transcribed

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

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

More Books

Students also viewed these Accounting questions

Question

12. Discuss the research investigating imagery and group dynamics.

Answered: 1 week ago

Question

List behaviors to improve effective leadership in meetings

Answered: 1 week ago