Answered: Calculate the Interest, Commitment…

Calculate the Interest, Commitment Fees, and EAR on the following credit line: a. $500,000 credit line. b. 12% interest rate. c. $200,000 borrowed on average for year. d. 1.0% commitment fee.

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter7: Using Consumer Loans

Section: Chapter Questions

Problem 7FPE: Calculating interest and APR of installment loan. Assuming that interest is the only finance charge,...

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Question

Calculate the interest? General accounting

Calculate the Interest, Commitment Fees, and EAR on the
following credit line:
a. $500,000 credit line.
b. 12% interest rate.
c. $200,000 borrowed on average for year.
d. 1.0% commitment fee.

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