During the Last Year You Have Had a Loan Commitment

question 71

Multiple Choice

During the last year you have had a loan commitment from your bank to fund working capital for your business. The total line available was $10,000,000, of which you took down $9,125,000. It is now the end of the loan commitment period and your bank had you 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 $9,125,000) of $31,100 on this loan commitment. You remember that the back-end fee was 85 basis points. Calculate the front-end fee on this loan commitment.

• A) 31 basis points
• B) 28 basis points
• C) 26 basis points
• D) 24 basis points

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Definitions:

Inheritance

The process by which genetic information is passed on from parents to their offspring, determining certain characteristics of the offspring.

Live-virus Vaccines

Vaccines that contain a version of the living virus that has been weakened so that it does not cause the disease in people with normal immune systems.

Weakened Viruses

Viruses that have been attenuated (reduced in virulence) for use in vaccines, allowing the immune system to develop immunity without causing the disease.

Immune Response

The body's defensive reaction to foreign substances or organisms, involving recognition and destruction.