Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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 61,400,000
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