User Account

All Pages

Calculating fees on a loan commitment

Assignment Help Finance Basics
Reference no: EM131190723

Calculating Fees on a Loan Commitment You have approached your local bank for a start-up loan commitment for $1,030,000 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 = $1,030,000, term = 1 year, up-front fee = 25 basis points, back-end fee = 60 basis points, and rate on the loan = 11%. If you immediately take down $780,000 and no more during the year, what is the total interest and fees you have paid on this loan commitment?

$94,555

$117,375

$89,875

$89,250

Reference no: EM131190723

Questions Cloud

Monthly amortization schedule : Monthly amortization schedule. Sherry and Sam want to purchase a condo at the coast. They will spend $650,000 on the condo and are taking out a loan for the whole amount for the condo for twenty years at 7.0% interest. What is the monthly payment on ..
What is the beta of portfolio : Portfolio Beta You own $25,000 of City Steel stock that has a beta of 3.35. You also own $40,000 of Rent-N-Co (beta = 1.80) and $21,000 of Lincoln Corporation (beta = -.80). What is the beta of your portfolio?
The problem of adverse selection in insurance markets : The problem of adverse selection in insurance markets means that it is generally a bad deal for companies to offer insurance at the same price for all potential customers.
Discuss the importance of the time value of money concepts : Define and discuss the importance of the time value of money concepts including compounding (future value), discounting (present value), and annuities. Why do organization leaders need to understand these concepts?
Calculating fees on a loan commitment : You have approached your local bank for a start-up loan commitment for $1,030,000 needed to open a car repair store. You have requested that the term of the loan be one-year.
Identify at least three weaknesses as a nurse practitioner : Analyze the history of advanced practice nurses and the emerging role of your specialty area, and discuss what contributions you plan to make to advance the nursing profession.
Do you think management is an art or a science : Do you think management is an art or a science - Describe using suitable examples the basic management functions and list the components of the general environment.
Primary stakeholders for most npo : Who are the primary stakeholders for most NPOs? Do you think accountability and interperiod equity are more relevant to NPOs than to for-profit organizations? Explain your response.
The importance of the yield-to-maturity : Describe or define and discuss a type of bond that interests you and how it is differentiated from other bonds. Then explain how valuing bonds is done and how interest rates affect their value. Consider the importance of the yield-to-maturity (YTM) i..

Reviews

Write a Review

Finance Basics Questions & Answers

  Price the bonds from the above table with annual coupon pay

Price the bonds from the above table with annual coupon payments.

  Small motors inc which is currently operating at full

small motors inc which is currently operating at full capacity has sales of 29000 current assets of 1600 current

  What a business or government agency would need to consider

Write an essay in which you evaluate what a business or government agency would need to consider before transferring a hardy but non indigenous species to another country.

  What coupon rate should the company set

What coupon rate should the company set on its new bonds if it wants them to sell at par?- The current bonds have a face value of $1000.

  Historically risk management has generally been limited to

historically risk management has generally been limited to pure loss exposure including property risks liability risks

  Discuss the assumptions of the dividend discount model ddm

discuss the assumptions of the dividend discount model ddm the necessary information needed to conduct equity valuation

  How is preferred stock similar to bonds

investors can sue the firm if preferred dividend payments are not paid much like bondholders can sue for non-payments of interest.

  Insurance price of the bond

A 10-year zero-coupon bond that yields a 5% is issued with a $1000 par value. What is the insurance price of the bond?

  Calculate next year ending receivables balance

Receivables are currently $15M on credit sales of $120M Credit sales are expected to grow by 20% next year. Calculate next year's ending receivables balance (make calculations using ending balances and a 360 day year).

  Passengers in the other car for personal injuries

Al Smith, who lives in Territory five, carries 10/20/5 compulsory liability insurance along with optional collision that has a $300 deductible. Al, who was at fault in an accident, caused $4,000 damage to the other auto, as well as $900 damage to ..

  Internal control environment

Compare the existing internal control environment at Microsoft to management's responsibility for designing effective internal controls outlined in the textbook, and identify the deficiencies that existed.

  Distributions of monthly intc returns and msft returns

MAF759 - QUANTITATIVE METHODS FOR FINANCE - Calculate monthly discrete returns (hint: holding period returns) for the NASDAQ index, Intel Corporation (INTC) and Microsoft Corporation (MSFT) stocks prices, respectively.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd