Bun Bank has issued a one-year $20 million loan commitment to a customer for an up-front fee of 15 basis points and at a base rate of 10.5% and risk premium of 0.50%. The back-end fee for the unused portion of the commitment is 10 basis points. The bank requires a 10 percent compensating balance in demand deposits. Reserve requirements on demand deposits are 15 percent. What is the dollar income on the loan at the end of the year if 70 percent of the loan is drawn? Estimate using future values of fee and interest income received, that is, return is defined as all fee and interest income earned at year-end as a percentage of funds used. Assume the cost of funds to the bank is 6 percent. $1,415,620 $1,625,000 $1,928,000 $1,577,800 $1,918,060