In 2013, Grand Falls Bank (GFB) had $4,000,000 in business loans at an average i

Question

In 2013, Grand Falls Bank (GFB) had $4,000,000 in business loans at an average interest rate of 3.5 percent as well as $3,200,000 in consumer loans with an average rate of 8 percent. GFB also has $750,000 invested in government securities that pay interest at an average rate of 2.5 percent.

   For 2014, GFB estimates that the volume of business loans will increase to $6,000,000, and the interest rate will rise to 5 percent. It projects that consumer loans will be $4,000,000 and have an average interest rate of 11 percent. The bank's government security investment will be $1,600,000 and will bear an average interest rate of 4.5 percent. What is GFB's projected revenue for 2014?

$_____

Explanation / Answer

In 2013, Grand Falls Bank (GFB) had $4,000,000 in business loans at an average i

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.