EZ-Credit, Inc., has $80 million in consumer loans with an average interest rate of 13.5 percent. The

Question:

EZ-Credit, Inc., has $80 million in consumer loans with an average interest rate of 13.5 percent. The bank also has $64 million in home equity loans with an average interest rate of 9 percent. Finally, the company owns $6 million in corporate securities with an average rate of 6 percent. EZ-Credit estimates that next year its consumer loan will rise to $84 million and the interest rate will fall to 12 percent. Its home equity loans will fall to $60 million with an average interest rate of 8 percent, and its corporate securities will increase to $16 million with an average rate of 7 percent.
Required
Estimate EZ-Credit’s revenues for the coming year.

Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...