Calculations of loan fees income

Reference no: EM1367083

An FI makes a loan commitment of $2,500,000 with an up-front fee of fifty basis points and a back-end fees of 25 basis points on the unused portion of loan. The takedown on the loan is 50 percent.

What are the total fees earned by the FI at the end of the year, that is, in future value terms? Assume the cost of capital for the FI is 6%

I don't understand how the cost of capital fits into this problem... is it relevant at all?

Reference no: EM1367083

Questions Cloud

Explain relation schema and set of functional dependencies : Consider relation schema r(A,B,C,D,E, F) and a set of functional dependencies {A BCD,BCDE,BD,DA}. Calculate canonical cover for set of functional dependencies (show each step of your derivation with an explanation).

Human development theory-current developmental stage : Explain the human development theory which best reflects your present developmental stage. How is the selected theory linked with your status and as adult learner?

What are normal goods : What are "normal" goods? Give an example in our current economy and what are "inferior" goods? Give an example in our current economy.

Cervical-ovarian and uterine cancer : Recognized the main differences between the cervical, ovarian, and uterine cancer. Compared the benign and malignant tumors of the cervix, uterus, and ovaries.

Calculations of loan fees income : An FI makes a loan commitment of $2,500,000 with an up-front fee of fifty basis points and a back-end fees of 25 basis points on the unused portion of loan. The takedown on the loan is 50 percent.

Write program to compute student-s quiz average : Write a program that will compute student's quiz average. Program must prompt the user for the number of quizzes and then ask the user for each quiz grade.

Connection between demand for goods and market failures : What is significant about the connection between the demand for goods and market failures? What happens to the demand for goods when a market fails

Aggregate demand for goods and services : The Aggregate Demand for goods and services in an economy must at every moment equal the value of Real Gross Domestic Product because both are defined to be the sum of (C+I+G+X-IM).

Write class to represent temperatures in degree-fahrenheit : Write Temperature class to represent temperatures in degrees in Celsius, Fahrenheit and Kelvin. Use floating-point number for temperature and a character (type char) for scale.

User Account

All Pages