What is the total interest and fees you have paid on loan

Assignment Help Finance Basics

Reference no: EM131953100

Question: Calculating Fees on a Loan Commitment You have approached your local bank for a start-up loan commitment for $1,150,000 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 = $1,150,000, term = 1 year, up-front fee = 25 basis points, back-end fee = 60 basis points, and rate on the loan = 9%. If you immediately take down $900,000 and no more during the year, what is the total interest and fees you have paid on this loan commitment?

Reference no: EM131953100

Questions Cloud

How much can you withdraw each month : When you retire, you will combine your money into an account with an annual return of 8 percent. How much can you withdraw each month from your account?

Do financial analysts accurately predict stock performance : Do financial analysts accurately predict stock performance? Is the Trump tax cut good for financial markets? Why or why not?

Calculate the yield-to-maturity of mortgage bond : Calculate the yield-to-maturity of a 5.25% subordinated mortgage bond due at the end of 2024 that is selling for $1,020 today.

Calculate the present value of annuity : Calculate the present value of annuity of receiving $5000 each year for the next 12 years at a 7% interest rate.

What is the total interest and fees you have paid on loan : Calculating Fees on a Loan Commitment You have approached your local bank for a start-up loan commitment for $1,150,000 needed to open a car repair store.

Using the unbiased expectations theory : Using the unbiased expectations theory, calculate the current (long-term) rates for one-, two-, three-, and four-year maturity Treasury securities.

Compute the company cost of equity capital : Calculating Cost of Equity. Halestorm Corporation's common stock has a beta of 1.15. If the risk-free rate is 3.6 percent and the expected return on the market.

What is the rate of return on investment : If the maintenance margin requirement is 30%, will Old Economy receive a margin call? What is the rate of return on the investment?

Copy-tracking mechanisms on the copying machines : Your manager asks you to study the possibility of installing Copy-tracking mechanisms on the copying machines.

User Account

All Pages