Answered step by step
Verified Expert Solution
Question
1 Approved Answer
kindly solved Your firm has a committed line of credit with your bank with a commitment fee of 0.7% (EAR) and an interest rate of
kindly solved
Your firm has a committed line of credit with your bank with a commitment fee of 0.7% (EAR) and an interest rate of 6.2% (EAR). The fotal line is $400,000 and you borrowed $150,000 at the beginning of the year. If you repay the $150,000 at the end of the year, what is your total cost, in dollars of the interest and commitment fee? What is this cost as a percentage of the amount you borrowed? Your total cost, in dollars of the interest and commitment fee, is $ (Round to the nearest dollar) Your total cost as a percentage of the amount you borrowed is \%. (Round to two decimal place.)Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started