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Bridgeport Inc has a $30 million revolving credit agreement with its bank at prime plus 3.2% based on a calendar year. Prior to the month
Bridgeport Inc has a $30 million revolving credit agreement with its bank at prime plus 3.2%
based on a calendar year. Prior to the month of April, it had taken down $15 million that was
outstanding for the entire month. On April 10, it took down another $5M. Prime is 8.2%, and the
bank's commitment fee is .25% annually. Calculate the charges associated with Bridgeport's revolving
credit agreement for the month of April.
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