One Stop Has Been Approved for a $55,000 Loan Commitment

question 62

Multiple Choice

One Stop has been approved for a $55,000 loan commitment from its local bank.The bank has offered the following terms: term = one year,up-front fee = 85 basis points,back-end fee = 35 basis points,and rate on the loan = 9.75 percent.Casey's expects to immediately take down $45,000 and no more during the year unless there is some unforeseen need.Calculate the total interest and fees Casey's One Stop can expect to pay on this loan commitment.

• A)$5,050
• B)$5,115
• C)$4,890
• D)$4,650

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Definitions:

Resources Share

Resources Share involves the distribution or pooling of available assets, information, or materials among organizations or individuals to achieve common goals.

Capacity

The maximum amount that something can contain or produce, or the ability to perform, understand, or withstand.

Strategic Restructuring

The process of fundamentally rethinking and redesigning organizational structures, operations, and processes to better align with strategic goals.

Management Models

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