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Valley Granite has secured a line of credit with and interest rate 4% (EAR). The credit line has a maximum of $450,000 and a commitment

Valley Granite has secured a line of credit with and interest rate 4% (EAR). The credit line has a maximum of $450,000 and a commitment fee of 0.3% (EAR). If the Valley Granite borrows $375,000 at the start of the year and repays it at the end of the year, what is the total cost of the loan?

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