Bandolier Bicycles Has a Committed Line of Credit with a Maximum

question 65

Multiple Choice

Bandolier Bicycles has a committed line of credit with a maximum of $450,000 and interest rate of 4% (EAR) .The loan has a commitment fee of 0.3% (EAR) .If the firm borrows $375,000 at the start of the year and repays it at the end of the year,what is the total cost of the loan?

• A)$15,225
• B)$15,000
• C)$18,225
• D)$18,000
• E)$16,125

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Definitions:

Ethical Customer Service

A business practice that involves providing services to customers in a manner that is fair, transparent, and respectful to both consumer rights and wellbeing.

Non-Controversial

Pertaining to topics, subjects, or issues that generally do not provoke disagreement, debate, or opposition.

Self-Esteem Trap

A situation in which one's sense of self-worth is caught in a pattern of unrealistic or negative self-assessment.

Self-Image

The way you honestly see yourself.