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Gladys Bank and Trust has $385 million in consumer loans with an average interest rate of 7.50 percent. The bank also has $265 million
Gladys Bank and Trust has $385 million in consumer loans with an average interest rate of 7.50 percent. The bank also has $265 million in home equity loans with an average interest rate of 5 percent. Finally, the company owns $85 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 $345 million and the interest rate will increase to 9.00 percent. They also estimate that its home equity loans will increase to $305 million with an average interest rate of 7 percent, and its government securities portfolio will increase to $100 million with an average rate of 9.00 percent. Required: Estimate the revenues for the coming year for Gladys Bank and Trust. Note: Enter your answer in thousands of dollars. Interest revenue
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