Calculating Fees on a Loan Commitment Calculate the Total Fees

question 41

Multiple Choice

Calculating Fees on a Loan Commitment Calculate the total fees a firm would have to pay when its bank offers the firm the following loan commitment: A loan commitment of $5,000,000 with an up-front fee of 50 basis points and a back-end fee of 20 basis points.The take-down on the loan is 80 percent.

• A)$10,000
• B)$25,000
• C)$27,000
• D)$33,000

---

Definitions:

Child Abuse

The physical, sexual, emotional mistreatment, or neglect of a child by a parent, guardian, or other responsible person.

Neglect

Refers to the failure to provide adequate care, support, or attention to someone's needs, often resulting in harm or risk of harm.

Drug Addicts

individuals who are dependent on drugs, where such usage negatively affects their physical and mental health, and social relationships.

Alcoholics

individuals who suffer from alcoholism, characterized by a physical or psychological dependency on alcoholic substances.