answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Paraphin [41]
2 years ago
15

TLC Credit, Inc. has $35.0 million in consumer loans with an average interest rate of 12.0%. The bank also has $30.0 million in

home equity loans with an average interest rate of 8.0%. Finally, the bank owns $5.0 million in corporate securities with an average interest rate of 6%. Next year, consumer loans will increase to $40.0 million because of a rate decrease to 10.0%, while home equity loans will increase to $32.0 million at an average interest rate of 6.5%. Unfortunately, the investment in corporate securities will decrease by 20% and the average interest rate will be only 9.0%. What is TLC's estimated change in revenues next year?
Business
1 answer:
MissTica2 years ago
6 0

Answer:

$460,000 decrease

Explanation:

The computation of TLC's estimated change in revenues next year is shown below:-

TLC's estimated change in revenues next year = ((Consumer loan × Interest rate) + (Home equity loan × Interest rate) + (Corporate securities × Interest rate)) - ((Increased consumer loan × Decrease rate) + (Increase equity loan × Interest rate) + (Corporate securities × (1 - decreased percentage) × average interest rate))

= (($35.0 million × 0.12) + ($30.0 million × 0.O8) + ($5.0 million × 0.06)) - (($40.0 million × 0.10) +($32.0 million × 0.065) + (5 million × (1 - 20%)  × 0.09))

=$6,900,000 - $6,440,000

= $460,000 decrease

Therefore for computing the TLC's estimated change in revenues next year we simply applied the above formula.

You might be interested in
The 4 basic conditions set up in a functional analysis are: a. Alone, extinction, demand, and gain b. Alone, attention, demand,
Vladimir [108]

Answer: b. Alone, attention, demand, and tangible

Explanation:

There are four basic conditions used in functional analysis they are known as three test conditions

1. social positive (attention),

2. social negative (escape),

3. alone

4. control condition play.

Each test conditions are usually carried out one at a time in turns or arrangements to known which conditions would predict the result in problem behaviours scenerios. The results guides teachers and professionals in determining alternative skills to teach which would lead to a decrease in problematic behaviours. An advantage functional ability has is it ability to identify problematic behaviours.

3 0
2 years ago
Read 2 more answers
___ is a portfolio-planning tool for identifying company growth opportunities through market penetration, market development, pr
pentagon [3]

Answer:

Product market expansion grid

Explanation:

Product market expansion grid -  

It is used to plan for the company , when the company is indeed of expanding , is referred to as Product market expansion grid .  

The strategy or information required for the company to increase sale of the goods and services or introducing a new product in the upcoming market , uses this plan.  

Hence , from the given information of the question,

The correct term is  Product market expansion grid .

8 0
2 years ago
The city wants to pave the road in front of Sam Smith's house. Sam has 110 front feet. The cost to pave is $35 a linear foot and
Anna71 [15]

Answer:

$1,443.75

Explanation:

The total cost for paving Sam's portion of the road = $35 per linear foot x 110 front feet =  $3,850

If the city is going to pay 25% of the total cost, then it will pay $962.50, that would leave a total of $2,887.50 to be paid between Sam and his front neighbor. So Sam's share = $2,887.50 / 2 = $1,443.75

4 0
2 years ago
Pineapple Enterprises has an outstanding liability that will require them to pay Apple Co. $50,000 in 5 years. How much cash wou
Anna007 [38]

Answer:

$33,648.57

Explanation:

The computation of Required deposit today is given below:-

For computing the required deposit today first we need to find out the present value

Present value of 1 = (1 + i)^-n

= (1 + 0.02)^-20

= 0.67297133

Where, i = 8%/4

= 0.02

n = 5 × 4

= 20

Required deposit today = Future value × Present value of 1

= $50,000 × 0.672971      

= $33,648.57

4 0
2 years ago
Select the correct answers. Which strategy would be most suitable for a company at the maturity stage of its product life cycle?
Dvinal [7]

Answer:

B

Explanation:

when creating awareness via advertising about certain product it help the public to keep anticipating about one's product

6 0
2 years ago
Other questions:
  • Jane Smith has $20,000 in a brokerage account, and she plans to contribute an additional $7,500 to the account at the end of eve
    15·1 answer
  • As a company owner, you are trying to grow your party supply sales by reaching new customers. You know most of your customers ar
    9·1 answer
  • A firm is experiencing a loss of $5,000 per year. The firm has fixed costs of $8,000 per year.a. Should the firm operate in the
    6·1 answer
  • Jackie Swain obtains a $65,000 loan on her home. The principal and interest payments are based on a factor of 8.05 per $1,000. T
    7·1 answer
  • The company that Layton owns, the Music Box, is a family-owned company that has been in business for more than 100 years. Layton
    14·1 answer
  • Paul Davis wants to deposit a lump sum of money today for a vacation that he plans to take to Asia after he graduates from Gradu
    5·1 answer
  • Pabon Corporation makes one product. Budgeted unit sales for August and September are 11,100 and 12,600 units, respectively. The
    10·1 answer
  • Bluestone Company had three intangible assets at the end of the current year: a. A patent purchased this year from Miller Co. on
    15·1 answer
  • Wilson’s is reviewing a project with an internal rate of return of 13.09 percent and a beta of 1.42. The market risk premium is
    12·1 answer
  • IM Enterprises sells two products, Crunchies and Munchies. Crunchies have a 32 percent contribution margin and Munchies have a 3
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!