Calculating Fees on a Loan Commitment During the Last Year

question 9

Multiple Choice

Calculating Fees on a Loan Commitment During the last year you have had a loan commitment from your bank to fund inventory purchases for your small business.The total line available was $500,000,of which you took down $400,000.It is now the end of the loan commitment period and your bank is asking you to pay the back-end fees.You have misplaced the paperwork that listed the terms of the commitment,but you know you paid total fees (this does not include any interest paid to borrow the $400,000) of $1,750 on this loan commitment.You remember that the up-front fee was 25 basis points.What is the back-end fee on this loan commitment?

• A)5 basis points
• B)50 basis points
• C)10 basis points
• D)20 basis points

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Definitions:

Ecosystem Diversity

Ecosystem diversity refers to the variety of habitats, biotic communities, and ecological processes in the biosphere, as well as the diversity within ecosystems.

Species Diversity

The variety and abundance of different species within a given ecological community or ecosystem.

Genetic Diversity

The amount of genetic information within a single population species.

Deep Ecology

Belief that unless we believe environmental issues become “our” issues, very little can be accomplished.