Solution-Calculating fees on a loan commitment

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..

User Account

All Pages

Calculating fees on a loan commitment

Reference no: EM131190723

Reference no: EM131190723

Questions Cloud

Reviews

Write a Review

Finance Basics Questions & Answers

Financial reporting and analysis

A report on financial accounting

Describe the types of financial ratios

Differences between sole proprietorship and corporation

Prepare a cash budget statement

What are the implied interest rates

State pricing theory and no-arbitrage pricing theory

Small business administration

Effect of financial leverage

Evaluate the basis for the payment to the lender

Importance of opps, ipps, mpfs and dmepos

Time value of money

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT