On January 2, 20X1, City Hospital established a line of credit with First Union National Bank. The

Question:

On January 2, 20X1, City Hospital established a with First Union National Bank. The terms of the called for a $200,000 maximum loan with an interest of 11 percent. Then compensating balance requirement is 15 percent of the total (with no additional fees charged).
How would the answer to part of a change if the additional fees were $500?
Line of Credit
A line of credit (LOC) is a preset borrowing limit that can be used at any time. The borrower can take money out as needed until the limit is reached, and as money is repaid, it can be borrowed again in the case of an open line of credit. A LOC is...