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What is the cost of the loan

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AA Cruise Lines has negotiated a 60 day $ 5 MM line of credit with a bank that has a 0.5% annual commitment fee on the unused portion of the line. The interest rate is 10.25% for the line of credit. AA borrowed the entire $ 5 MM for the first 30 days only.

What is the cost of the loan?

Reference no: EM132932911

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