Rosemary Bank has issued a one-year loan commitment of $50 million for an up-front fee of 75 basis points. The back-end fee on the unused portion of the commitment is 50 basis points. The banks base rate on loans is 8 percent and loans to this customer carry a risk premium of 2 percent. The bank requires a compensating balance on loans of 10 percent to be placed in demand deposits and must maintain reserve requirements on demand deposits of 10 percent. The customer is expected to draw down 70 percent of the commitment at the beginning of the year.

1. What is the total revenue generated by the financial institution on the loan?
2. What are the total funds committed on the loan?
3. What is the expected return on the loan?