Gladys Bank and Trust has $430 million in consumer loans with an average interest rate of 7.95 percent. The bank also has $310 million in home equity loans with an average interest rate of 5 percent. Finally, the company owns $130 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 $390 million and the interest rate will increase to 9.45 percent. They also estimate that its home equity loans will increase to $350 million with an average interest rate of 7 percent, and its government securities portfolio will increase to $145 million with an average rate of 13.50 percent. Question: Estimate the revenues for the coming year for Gladys Bank and Trust.

Gladys Bank and Trust has $430 million in consumer loans with an average interest rate of 7.95 percent. The bank also has $310 million in home equity loans with an average interest rate of 5 percent. Finally, the company owns $130 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 $390 million and the interest rate will increase to 9.45 percent. They also estimate that its home equity loans will increase to $350 million with an average interest rate of 7 percent, and its government securities portfolio will increase to $145 million with an average rate of 13.50 percent. Question: Estimate the revenues for the coming year for Gladys Bank and Trust.

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter21: Supply Chains And Working Capital Management

Section: Chapter Questions

Problem 17P: The Raattama Corporation had sales of $3.5 million last year, and it earned a 5% return (after...

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