Question
In the prior year, Grand Falls Bank (GFB) had $8,800,000 in business loans at an average interest rate of 3.5 percent as well as $7,040,000
In the prior year, Grand Falls Bank (GFB) had $8,800,000 in business loans at an average interest rate of 3.5 percent as well as $7,040,000 in consumer loans with an average rate of 8 percent. GFB also has $1,650,000 invested in government securities that pay interest at an average rate of 2.5 percent. For the current year, GFB estimates that the volume of business loans will increase to $13,200,000, and the interest rate will rise to 5 percent. It projects that consumer loans will be $8,800,000 and have an average interest rate of 11 percent. The banks government security investment will be $3,520,000 and will bear an average interest rate of 4.5 percent. What is GFBs projected revenue for the current year? Projected revenue: $
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