Calculating Fees on a Loan Commitment You have approached your local bank for a start-up loan commitment for $1,180,000 needed to open a car repair store. You have requested that the term of the loan be one-year. Your bank has offered you the following terms: size of loan commitment = $1,180,000, term = 1 year, up-front fee = 30 basis points, back-end fee = 30 basis points, and rate on the loan = 11%. If you immediately take down $930,000 and no more during the year, what is the total interest and fees you have paid on this loan commitment?

Multiple Choice

• $134,090

• $109,380

• $106,590

• $105,840