Weiss Inc. arranged a $9,000,000 revolving credit agreement with a group of banks. The firm paid an annual commitment fee of 0.5% on the unused balance of the loan commitment. On the used portion of the revolver, it paid 1.5% above prime for the funds actually borrowed on a simple interest basis. The prime rate was 9% during the year. If the firm borrowed $6,000,000 immediately after the agreement was signed and repaid the loan at the end of one year, what was the total dollar annual cost of the revolver? Do not round intermediate calculations.
A. $715,950
B. $793,350
C. $645,000
D. $735,300
E. $703,050
Answer: C
You might also like to view...
Keeping in mind the rules for pronoun casing, when a pronoun is part of the compound subject, use the:
A. nominative case. B. objective case. C. possessive case. D. infinitive case.
Peter was recently laid off from his job. He was looking forward to some "paid vacation" as he collects unemployment benefits for staying home. But then he learned that in order to be eligible for benefits, he has to submit an application for unemployment compensation with the state employment agency, register for available work, and be willing to accept any suitable employment that may be offered to him.
Answer the following statement true (T) or false (F)
Plans that reward groups of employees based upon reducing costs or otherwise increasing productivity are _________________________.
Fill in the blank(s) with the appropriate word(s).
Marketers using a flexible-price policy should take care to avoid
A. contradictory promotions. B. price discrimination. C. changes in market segmentation. D. requests for allowances. E. support from government agencies.