Gladys Bank and Trust has $440 million in consumer loans with an average interest rate of 8.05 percent. The bank also has $320 million in home equity loans with an average interest rate of 5 percent. Finally, the company owns $140 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 $400 million and the interest rate will increase to 9.55 percent. They also estimate that its home equity loans will increase to $360 million with an average interest rate of 7 percent, and its government securities portfolio will increase to $155 million with an average rate of 14.50 percent. Required: Estimate the revenues for the coming year for Gladys Bank and Trust. Note: Enter your answer in thousands of dollars. Interest revenue
Gladys Bank and Trust has $440 million in consumer loans with an average interest rate of 8.05 percent. The bank also has $320 million in home equity loans with an average interest rate of 5 percent. Finally, the company owns $140 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 $400 million and the interest rate will increase to 9.55 percent. They also estimate that its home equity loans will increase to $360 million with an average interest rate of 7 percent, and its government securities portfolio will increase to $155 million with an average rate of 14.50 percent. Required: Estimate the revenues for the coming year for Gladys Bank and Trust. Note: Enter your answer in thousands of dollars. Interest revenue
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Gladys Bank and Trust has $440 million in consumer loans with an average interest rate of 8.05 percent. The bank also has $320
million in home equity loans with an average interest rate of 5 percent. Finally, the company owns $140 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 $400 million and the interest rate will
increase to 9.55 percent. They also estimate that its home equity loans will increase to $360 million with an average interest rate of 7
percent, and its government securities portfolio will increase to $155 million with an average rate of 14.50 percent.
Required:
Estimate the revenues for the coming year for Gladys Bank and Trust.
Note: Enter your answer in thousands of dollars.
Interest revenue
CARRER](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1aacc468-98e0-4221-9d63-defa9e9d2aee%2Fbba6f870-9eb3-4935-b383-97dfd182de42%2F8gkbylf.jpeg&w=3840&q=75)
Transcribed Image Text:ok
Gladys Bank and Trust has $440 million in consumer loans with an average interest rate of 8.05 percent. The bank also has $320
million in home equity loans with an average interest rate of 5 percent. Finally, the company owns $140 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 $400 million and the interest rate will
increase to 9.55 percent. They also estimate that its home equity loans will increase to $360 million with an average interest rate of 7
percent, and its government securities portfolio will increase to $155 million with an average rate of 14.50 percent.
Required:
Estimate the revenues for the coming year for Gladys Bank and Trust.
Note: Enter your answer in thousands of dollars.
Interest revenue
CARRER
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