Inland Oil arranged a R10,000,000 revolving credit agreement with a group of small banks.The firm paid an annual commitment fee of one-half of one percent of the unused balance of the loan commitment.On the used portion of the loan, Inland paid 1.5 percent above prime for the funds actually borrowed on an annual simple interest basis.The prime rate was at 9 percent for the year.If Inland borrowed R6,000,000 immediately after the agreement was signed and repaid the loan at the end of one year, what was the total rand cost of the loan agreement for one year?

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The Answer of Inland Oil arranged a R10,000,000 revolving credit agreement with a group of small banks.The firm paid an annual commitment fee of one-half of one percent of the unused balance of the loan commitment.On the used portion of the loan, Inland paid 1.5 percent above prime for the funds actually borrowed on an annual simple interest basis.The prime rate was at 9 percent for the year.If Inland borrowed R6,000,000 immediately after the agreement was signed and repaid the loan at the end of one year, what was the total rand cost of the loan agreement for one year?

Inland Oil Arranged a R10,000,000 Revolving Credit Agreement with a Group