A loan commitment of $4.43 million with an up-front fee of 60 basis points and a back-end fee of 35 basis points. The take-down on the loan is 40 percent. Calculate the total fees you will pay on this loan commitment.

Total fees paid = $2,700,085

Explanation:

Given:

Loan Amount = $4,430,000

Up-Front basis fee = 60 points

Back-end fee = 35 points

Take down = 40 %

Computation:

Up-Front basis fee = $4,430,000 x 0.0060

Up-Front basis fee = $26,580

Back-end fee = $4,430,000 x 0.0035

Back-end fee = $15,505

Take down amount = $4,430,000 x 40%

Take down amount = $1,772,000

So

Total fees paid = [$4,430,000 - $1,772,000] + $26,580  + $15,505

Total fees paid = $2,700,085

there was no passage listed but using the process of elimination i'd say it was d. the high economy would do the opposite. i don't see how low prices would affect it. high unemployment is possible but i feel d is the better answer.

the correct answer is economics is a game without winners or losers.

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.