Valley Granite has secured a line of credit with and interest rate 4% (EAR). The credit line
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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 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?
Related Book For
Survey of Accounting
ISBN: 978-0078110856
3rd Edition
Authors: Thomas P. Edmonds, Frances M. McNair, Philip R. Olds, Bor-Yi
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