Calculating Fees on a Loan Commitment You have approached your local bank for a start-up loan commitment for $2,100,000 needed to open an auto 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 = $2,100,000, term = 1 year, up-front fee = 15 basis points, back-end fee = 30 basis points. If you take down 90 percent of the total loan commitment, calculate the total fees you have paid on this loan commitment.

Multiple choice

• $ 3,780

• $ 8,820

• $ 3,150

• $ 6,300