Friendly Financial has $220 million in consumer loans with an average interest rate of 18...
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Friendly Financial has $220 million in consumer loans with an average interest rate of 18 percent. The bank also has $140 million in home equity loans with an average interest rate of 13 percent. Finally, the company owns $35 million in corporate securities with an average rate of 10 percent.
Managers at Friendly Financial estimate that next year its consumer loan portfolio will rise to $338 million and the interest rate will fall to 16 percent. They also estimate that its home equity loans will fall to $120 million with an average interest rate of 13 percent, and its corporate securities portfolio will increase to $37 million with an average rate of 10 percent.
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Estimate Friendly Financials revenues for the coming year. (Enter your answer in thousands of dollars.)
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