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1. Daud is thinking of getting an overdraft facility for his business and plans to pledge his house valued at RM1,500,000. The bank that he

1. Daud is thinking of getting an overdraft facility for his business and plans to pledge his house valued at RM1,500,000. The bank that he is applying is willing to provide him the facility, 60% of the property price. The commitment fee is 1% and the interest rate is BLR+1.7% per annum. Dauds overdraft account is as follows. BLR for January is 5.5% and has increased by1% the following month. Calculate the commitment fee for the month of February.

Date

Transaction

Amount (RM)

1 January 2019

Balance brought down

350,000

12 January 2019

Deposit

200,000

31 January 2019

Balance brought forward

150,000

14 February 2019

Withdrawal

400,000

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