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Estimate Friendly Financials revenues for the coming year

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Reference no: EM133114956

Question - Friendly Financial has $180 million in consumer loans with an average interest rate of14 percent. The bank also has $108 million in home equity loans with an average interest rate of 9 percent. Finally, the company owns $23 million in corporate securities with an average rate of 6 percent.

Managers at Friendly Financial estimate that next year its consumer loan portfolio will rise to $202 million and the interest rate will fall to 12 percent. They also estimate that its home equity loans will fall to $100 million with an average interest rate of 11 percent, and its corporate securities portfolio will increase to $31 million with an average rate of 8 percent.

Required - Estimate Friendly Financials revenues for the coming year.

Reference no: EM133114956

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