Question
BMI Ltd. had arranged with the bank for a 6 month line of credit of $200,000 at 6%. The bank charges 0.5% per year commitment
BMI Ltd. had arranged with the bank for a 6 month line of credit of $200,000 at 6%. The bank charges 0.5% per year commitment fee on any unused balance. BMI Ltd. ended up using only $180,000 for 4 months. Calculate the total cost of financing for the Line of Credit below:
b. On the BMI Line of Credit: what is the total commitment fee charged: $
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Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert Hughes
4th Edition
0256147175, 978-0256147179
