Calculating fees on a loan commitment

Assignment Help Finance Basics

Reference no: EM131951631

Question: Calculating Fees on a Loan Commitment You have approached your local bank for a start-up loan commitment for $1,170,000 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 = $1,170,000, term = 1 year, up-front fee = 15 basis points, back-end fee = 40 basis points, and rate on the loan = 10%. If you immediately take down $920,000 and no more during the year, what is the total interest and fees you have paid on this loan commitment?

Reference no: EM131951631

Questions Cloud

Composed of three die objects : A class called TripleDice, composed of three Die objects. Include methods to set and get the individual die values, a method to roll the dice

Should the system be purchased : Installing an automated production system costing $278,000 is initially expected to save Zia Corporation $52,000 in expenses annually.

Advantages and disadvantages of using subnet calculator : What are advantages and disadvantages of using a subnet calculator. Why should network administrators be able to calculate subnets manually?

Create a gui application in java netbeans : Joe also performs other nonroutine services and charges for parts and for labor ($20 per hour). Create a GUI application in java netbeans that diplays

Calculating fees on a loan commitment : Calculating Fees on a Loan Commitment You have approached your local bank for a start-up loan commitment for $1,170,000 needed to open a car repair store.

How long does a client requesting milk : The Shady Farm Milk Company can process milk at a fixed rale of 6,000 gallons' hour. the company's clients request 100,000 gallons of milk over the course.

Results of a linear programming solution : Assume that you will set your production (of products or services) according to the results of a linear programming solution.

What does the evidence each speech presents say about theme : What does evidence each speech presents say about theme and about nation in which they were written? How does each speech view American democracy differently?

Calculate operations value of a company with free cash flow : Calculate the operations value of a company with a free cash flow of 100, 106, 114, 115, 120 for the next first five years and for continuing value the growth.

User Account

All Pages