Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Friendly Financial has $135 million in consumer loans with an average Interest rate of 12 percent. The bank also has $95 million in home

 

Friendly Financial has $135 million in consumer loans with an average Interest rate of 12 percent. The bank also has $95 million in home equity loans with an average Interest rate of 10 percent. Finally, the company owns $25 million in corporate securities with an average rate of 9 percent. Managers at Friendly Financial estimate that next year its consumer loan portfolio will rise to $305 million and the Interest rate will fall to 10 percent. They also estimate that its home equity loans will fall to $80 million with an average Interest rate of 9 percent, and Its corporate securities portfolio will increase to $26 million with an average rate of 8 percent. Required: Estimate Friendly Financial's revenues for the coming year. (Enter your answer in thousands of dollars.) Interest revenue

Step by Step Solution

There are 3 Steps involved in it

Step: 1

To estimate Friendly Financials revenues for the coming year we need to calculate the interest reven... 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

Fundamentals of Cost Accounting

Authors: William N. Lanen, Shannon Anderson, Michael W Maher

6th edition

1259969479, 1259565408, 978-1259969478

More Books

Students also viewed these Finance questions