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A company has a $12 million credit line with a bank. The line was opened October 10 2016 (one year ago). The bank charges 5% for any drawdowns, and 0.25% for the unused portion. Please use the proper day-counts to answer this question. On October 10 the company drew down $2 million. On December 10 it borrowed an additional $1million. On December 31 it repaid $500,000. On June 1 the company drew down $5million. One June 5 it repaid the $5million. On August 31 it borrowed $9.5million until today (October 10 2017) Calculate the amount the company paid the bank for each of the six periods (Oct 10 to Dec 10; Dec 10 to Dec 31; etc.) What is the total amount of interest the bank received, and the total fee income?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92689657

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