Question: In 2013 Grand Falls Bank GFB had 4 000 000 in

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?

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