Calculating Fees on a Loan Commitment You have approached your local bank for a start-up loan commitment
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Calculating Fees on a Loan Commitment You have approached your local bank for a start-up loan commitment for $1,030,000 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 = $1,030,000, term = 1 year, up-front fee = 25 basis points, back-end fee = 60 basis points, and rate on the loan = 11%. If you immediately take down $780,000 and no more during the year, what is the total interest and fees you have paid on this loan commitment?
$94,555 $117,375 $89,875 $89,250
Related Book For
Finance Applications And Theory
ISBN: 9780073530673
2nd Edition
Authors: Marcia Cornett, Troy Adair, John Nofsinger
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