Calculating Fees on a Loan Commitment Casey's One Stop has been approved for a $127,500 loan commitment
Question:
Calculating Fees on a Loan Commitment Casey's One Stop has been approved for a $127,500 loan commitment from its local bank. The bank has offered the following terms: term = one year, up-front fee = 85 basis points, back-end fee = 35 basis points, and rate on the loan = 7.75 percent. Casey's expects to immediately take down $119,000 and no more during the year unless there is some unforeseen need. Calculate the total interest and fees Casey's One Stop can expect to pay on this loan commitment. (LG1)
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Finance Applications And Theory
ISBN: 9780073530673
2nd Edition
Authors: Marcia Cornett, Troy Adair, John Nofsinger
Question Posted: