Question

A firm has a committed line of credit with a maximum of $2.5 million and an interest rate of 9% with a certain bank. The commitment fee is 0.65%. The firm has $2 million outstanding on the line of credit on average during the year. What is the total cost of the loan?

Answer 1

, in the US you cannot withdraw money from it more than 6 times a month. Here is the explanation why. Current account is a "general-use"account on which you can write checks, use ATM/Debit cards and have unlimited transactions