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What the annual cost of this financing arrangement

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Question - The National Co. has a revolving line of credit of P300,000 with a one-year maturity. The terms call for 7% interest rate and a 1/2 percent commitment fee on the unused portion of the credit line. The average loan balance during the year was P100,000. What the annual cost of this financing arrangement?

Reference no: EM133140835

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