Calculating Fees on a Loan Commitment You have approached your local bank for a

start-up loan commitment for $250,000 needed to open a computer repair store. You have requested that the term of the loan be one-year. Your bank has offered you the following terms: size of loan commitment = $250,000, term = 1 year, up-front fee = 50 basis points,

back-end fee = 75 basis points. If you take down 80 percent of the total loan commitment, calculate the total fees you have paid on this loan commitment.