A firm has a $5 million revolving credit agreement with its bank at 1.5% over prime with a commitment fee of .5% unborrowed balance. What is the total cost of borrowing in a month when the prime rate is 8% if the firm borrowed $2 million prior to the beginning of the month and takes down an additional $1 million two thirds through the month on the 21^st? (Correct answers may differ due to rounding.) A)$21,875 B)$20,833 C)$20,417 D)$19,583

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The Answer of A firm has a $5 million revolving credit agreement with its bank at 1.5% over prime with a commitment fee of .5% unborrowed balance. What is the total cost of borrowing in a month when the prime rate is 8% if the firm borrowed $2 million prior to the beginning of the month and takes down an additional $1 million two thirds through the month on the 21^st? (Correct answers may differ due to rounding.) A)$21,875 B)$20,833 C)$20,417 D)$19,583

A Firm Has a $5 Million Revolving Credit Agreement with Its