ged with the bank for a 6-month line of credit of $200,000 at prime plus 2%. Prime rate is 4%. The bank charges a commitment fee of 0.5% annually on any unused balance. BMI Ltd. ended up using only $160,000 for 4 months. 1 question what is the total interest charged? 2 question what is the total commitment fee charged

ged with the bank for a 6-month line of credit of $200,000 at prime plus 2%. Prime rate is 4%. The bank charges a commitment fee of 0.5% annually on any unused balance. BMI Ltd. ended up using only $160,000 for 4 months. 1 question what is the total interest charged? 2 question what is the total commitment fee charged

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 19P

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