Question
Michael's Computers' local bank offers the firm a 12-month revolving credit agreement (revolver) of $500,000.The revolver's APR is 12 percent with a commitment fee of
Michael's Computers' local bank offers the firm a 12-month revolving credit agreement (revolver) of $500,000.The revolver's APR is 12 percent with a commitment fee of 0.5 percent on the unused portion.
Over the course of a year, Michael's Chief Financial Officer (CFO) believes it will have an average balance of $280,000 on the revolver, with a low of $50,000 and a high of $450,000.What is the annual effective cost of this proposed agreement?
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Elements of Electromagnetics
Authors: Matthew
3rd Edition
019513477X, 978-0195134773
