Calculating Fees on a Loan Commitment You have approached your local bank for a start-up loan...
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Calculating Fees on a Loan Commitment You have approached your local bank for a start-up loan commitment for $1,060,000 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 - $1,060,000, term 1 year, up-front fee 30 basis points, back-end fee = 30 basis points, and rate on the loan 8%. If you immediately take down $810,000 and no more during the year, what is the total interest and fees you have paid on this loan commitment? Calculating Fees on a Loan Commitment You have approached your local bank for a start-up loan commitment for $1,060,000 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 - $1,060,000, term 1 year, up-front fee 30 basis points, back-end fee = 30 basis points, and rate on the loan 8%. If you immediately take down $810,000 and no more during the year, what is the total interest and fees you have paid on this loan commitment?
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Related Book For
Finance Applications and Theory
ISBN: 978-0077861681
3rd edition
Authors: Marcia Cornett, Troy Adair
Posted Date:
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