Multiple Choice
Waller Corporation has an $18 million revolving credit agreement with its bank at prime plus 3%, based on a calendar year. It borrowed $3 million on June 1, when it accessed the agreement for the first time. Prime is 8.75% and the bank's commitment fee is 1/4% annually. What bank charges will Waller incur for the month of June?
A) $262,500
B) $3,120
C) $32,496
D) $29,375
Correct Answer:
Verified
Correct Answer:
Verified
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