A loan commitment of $4.26 million with an up-front fee of 60 basis points and a back-end fee of 50 basis points. The take-down on the loan is 60 percent.   Calculate the total fees you will pay on this loan commitment.

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 21P
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A loan commitment of $4.26 million with an up-front fee of 60 basis points and a back-end fee of 50 basis points. The take-down on the loan is 60 percent.

 

Calculate the total fees you will pay on this loan commitment.

 

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