a.Find the annual financing cost of a 45 day revolving credit agreement with a 0.5% commitment...

a.Find the annual financing cost of a 45 day revolving credit agreement with a 0.5% commitment fee. Assume you borrow $377,863m at 5.96%. You can borrow up to $500,000.

b.Find the annual financing cost (AFC) or a 30 day line of credit where the bank requires a 10% compensating balance requirement. Assume you borrow $211,895m at 5.39% and you have $20,000 in the bank.

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jeff jeffy answered 1 year ago

Compare and contrast an informal line of credit with a revolving credit agreement.

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