A $2 million line of credit is granted to a firm. Although an average of...
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A $ million line of credit is granted to a firm. Although an average of only percent of the limit is drawn down, bank imposes a commitment fee of percent per annum. The interest on funds used will be percent per year. However, the bank also charges a percent upfront fee to open the account. Calculate the annual total loan cost. Multiple Choice $ $ $ $ $ 
A $ million line of credit is granted to a firm. Although an average of only percent of the limit is drawn down, bank imposes a commitment fee of percent per annum. The interest on funds used will be percent per year. However, the bank also charges a percent upfront fee to open the account. Calculate the annual total loan cost.
Multiple Choice
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