Question you have approached your local bank for a start-up, Ask an Expert

Finance

Question: You have approached your local bank for a start-up loan commitment for $330,000 needed to open a computer 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 = $330,000, term = one year, up-front fee = 25 basis points, back-end fee = 50 basis points, and rate on the loan = 7 percent. Assume you Immediately take down $158,000 and no more during the year. Calculate the total interest and fees you will pay on this loan commitment.

View complete question

Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M92772583

Have any Question?Write your Review or question?

Related Questions in Basic Finance

If you deposit 970 every year for the next 6 years with

If you deposit $970 every year for the next 6 years, with first deposit to be made today and all deposits to be made at the beginning of every year, in an account that pays 8.01% APR with annual compounding, how much is ...

What is the payback period for the following set of cash

What is the payback period for the following set of cash flows (answer should include the fraction of the last year needed for a full payback)? What is the IRR? Year 0 = -256,000, Year 1 = 35,000, Year 2 = 77,000, Year 3 ...

Question - gamma energy is an oil producing company that

Question - Gamma Energy is an oil producing company that owns an oil field from which it can deliver 10 mln barrels of oil per year for the next four years. The current oil price is USD 75 per barrel. Extraction costs ar ...

Questions -q1 cj co stock has a beta of 09 the current

Questions - Q1: CJ Co stock has a beta of 0.9, the current risk-free rate is 5.6, and the expected return on the market is 13 percent. What is CJ Co's cost of equity? Q2: TAB Inc. has a $100 million (face value), 10-year ...

The winner of the first annual tom morris golf invitational

The winner of the first annual Tom Morris Golf Invitational won $110 in the competition which was held in 1900. In 2015, the winner received $1,470,000. If the winner's purse continues to increase at the same interest ra ...

Leibniz sells you an annuity that pays 1500 every month

Leibniz sells you an annuity that pays $1,500 every month from the end of September 2018 to the end of August 2022 with annual interest rate 7% compounded monthly. (round off all answers to two decimal places) (a) What i ...

Determine the internal rate of return for a project that

Determine the internal rate of return for a project that costs $177,000 and would yield after-tax cash flows of $21,000 per year for the first 5 years, $29,000 per year for the next 5 years, and $42,000 per year for the ...

You purchase a 15-year bond at a premium of 117292 with a

You purchase a 15-year bond at a premium of $1,172.92 with a 10% semi-annual coupon rate and 8% return. Two years later, you sell the bond. What is the price difference if the interest rates rose 2%? (rounded to 2 decima ...

Question - discuss common stock valuation and the required

Question - Discuss common stock valuation and the required assumption(s) for zero growth. Relate this discussion to a real-world problem.

Market-value ratios garret industries has a priceearnings

(?Market-value ratios?) Garret Industries has a? price/earnings ratio of 19.46X a. If? Garret's earnings per share is ?$1.65?, what is the price per share of? Garret's stock? b. Using the price per share you found in par ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Basic Finance Expert