The origination fee is 1.25%. For what amount was the loan signed for Del Llano to receive the $360,000 free of charge?
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DO IT IN EXCEL AND SHOW FORMULAS
DO IT IN EXCEL AND SHOW FORMULAS
Jorge Del Llano, a start-up merchant, needs $360,000.00 liquid to invest in inventory and pay certain start-up expenses for his business. The Bank has investigated him and considers him eligible for credit. The Bank authorizes an unsecured credit facility, subject to the provision of a line of credit appropriate to your needs, charging 18% interest for a term of 60 days. The origination fee is 1.25%. For what amount was the loan signed for Del Llano to receive the $360,000 free of charge?
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