Ahab's Army Surplus Has a Committed Line of Credit with a Maximum

question 12

Multiple Choice

Ahab's Army Surplus has a committed line of credit with a maximum of $1.2 million and interest rate of 3.5% (EAR) .The loan has a commitment fee of 0.45% (EAR) .If the firm borrows $900,000 at the start of the year and repays it at the end of the year,what is the total cost of the loan?

• A)$42,000
• B)$35,550
• C)$43,350
• D)$32,850
• E)$31,500

---

Definitions:

Anxiety

A feeling of worry, nervousness, or unease about something with an uncertain outcome.

Step-by-Step List

An itemized sequence of actions or instructions designed to achieve a specific outcome, guiding the user through a process in a logical order.

Self-description

How individuals present or describe themselves, often highlighting key personal attributes or achievements.

Personal Information

Data or details that pertain to an individual’s identity, background, or personal characteristics, often protected for privacy reasons.