Vaughn Way Landscaping has a formal line of credit of $510,000 with First Commerce Bank. The interest rate on the loan is 7 percent, and under the agreement Vaughn Skies must pay an annual fee of 76 basis points on the unused amount. The amount currently outstanding on the loan is $280,000. What is the annual fee the company must pay on the current unused balance? What is the effective interest rate? (Round answers to 2 decimal places, e.g. 52.75.)
Annual fee | $ | ||
Effective interest rate | % |
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