Forecast Guidelines Do a 12 month forecast (Jan 2022 to Dec 2022) using the following budget guidelines 1 Expect no growth in loans for the first three months and then 5 each month from April to June It will stay at this level (so 0 growth) until September and then we expect 3 growth from October to the end of the year 2 For the deposits, we expect a constant growth of 3 25 each month for the entire year 3 Operational and admin expenses will increase by $750 every month 4 The plan is to leave our average loan interest rate at 5 until June and then increase it to 7 for the second half of the year 5 For deposits, the interest we paid to our customers will go up by 0 10 each month for the first six months, and then stay flat (no change) for the rest of the year ABC BANK Balance Sheet 2022 FORECAST Jan Assets Loans Monthly Growth 0 Balance $50,000,000 Interest rate (per year) 5 00 Liabilities Monthly Growth 0 Deposits $75,000,000 Interest rate (per year) 1 00 Income Statement 2022 FORECAST Jan Loan Interest Income $208,333 Deposits Interest Expense $62,500 Operations and Admin Expense 15,000 Net Income (Profit or Loss) 130,833

Question: Forecast Guidelines : Do a 12 month forecast (Jan 2022 to Dec 2022) using the following budget guidelines 1 Expect no growth in loans for

Forecast Guidelines : Do a 12 month forecast (Jan 2022 to Dec 2022) using the following budget guidelines
1	Expect no growth in loans for the first three months and then 5% each month from April to June.
	It will stay at this level (so 0% growth) until September and then we expect 3% growth from October to the end of the year.

2	For the deposits, we expect a constant growth of 3.25% each month for the entire year

3	Operational and admin expenses will increase by $750 every month

4	The plan is to leave our average loan interest rate at 5% until June and then increase it to 7% for the second half of the year

5	For deposits, the interest we paid to our customers will go up by 0.10% each month for the first six months, and then stay flat (no change) for the rest of the year


ABC BANK

Balance Sheet
	2022 FORECAST
	Jan
Assets
Loans
Monthly Growth	0%
Balance	$50,000,000
Interest rate (per year)	5.00%

Liabilities
Monthly Growth	0%
Deposits	$75,000,000
Interest rate (per year)	1.00%




Income Statement	2022 FORECAST
	Jan
Loan Interest Income	$208,333


Deposits Interest Expense	$62,500
Operations and Admin Expense	15,000

Net Income (Profit or Loss)	130,833

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