Question: Calculating Fees on a Loan Commitment You have approached your local bank for a start-up loan commitment for $1,010,000 needed to open a car repair

Calculating Fees on a Loan CommitmentYou have approached your local bank for a start-up loan commitment for $1,010,000 needed to open a car repair store. You have requested that the term of the loan be one-year. Your bank has offered you the following terms: size of loan commitment = $1,010,000, term = 1 year, up-front fee = 15 basis points, back-end fee = 40 basis points, and rate on the loan = 8%. If you immediately take down $760,000 and no more during the year, what is the total interest and fees you have paid on this loan commitment?

Multiple Choice

$62,940
$83,315
$63,315
$66,355

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