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Calculating Fees on a Loan Commitment You Have Approached Your

question 80

Multiple Choice

Calculating Fees on a Loan Commitment You have approached your local bank for a start-up loan commitment for $1,000,000 needed to open an auto 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 = $1,000,000, term = 1 year, up-front fee = 20 basis points, back-end fee = 50 basis points. If you take down 90 percent of the total loan commitment, calculate the total fees you have paid on this loan commitment.

Distinguish between oral and written contracts and understand the implications of each under the law.

Understand the role and application of the parol evidence rule in contract disputes.

Recognize the exceptions to the statute of frauds and how they affect contract enforceability.

Understand the importance of usage of trade and its impact on contract interpretation and enforcement.

Definitions:

Confirmation Bias

The inclination to seek out, interpret, prefer, and remember data in a manner that affirms one's existing beliefs or hypotheses.

Psychological Disorder

A mental disorder characterized by patterns of thought, behavior, or emotions that are significantly distressing, dysfunctional, or deviant from cultural norms.

Loneliness

A complex and often painful emotional response to isolation or lack of companionship.

Attributional Reformulation

A psychological theory proposing that people reinterpret events to align with their personal beliefs and attitudes, often in a way that reduces cognitive dissonance.