Jordyn M. & Lindsay M. Surplus has a committed line of credit with a maximum of $1.2 million and interest rate of 3.5% (EAR). The loan has a commitment fee of 0.45% (EAR). If the firm borrows $900,000 at the start of the year and repays it at the end of the year, what is the total cost of the loan? (Show your calculations & cash flow on a timeline)

Answer rating: 100% (QA)

Borrowed amount of loan 900000 Committ... View the full answer