In this workout, we're asked to calculate the total fees and interest that will be payable on an RCF taken out by Paula Inc for a total of 200 million. The facility fees accrue at a rate of 0.07% of the full committed amount and the same is true of the security trustee fees at a rate of 0.03% per year of the full committed amount. The commitment fee, however, is only charged on unused amounts of the facility charged at a rate of 0.5% on an annualized basis. And the interest rate on any borrowed funds under the RCF are charged an interest rate at 2%. We're told that Paula Inc only drew down against this revolving credit facility for the third quarter of the year and only used 60% of the total amount. This was fully repaid at the end of the quarter. So we can now go down and calculate the values in relation to each of these data points. We've already populated the numbers for the size of the facility fee, the amount drawn down during Q3 as a proportion of the total facility itself, and how much of a year that applied for. So the whole quarter of the year. And we've got the facility fees, 0.07, the security trustee fee, 0.03, commitment fee rate, half a percent, and the interest rate, 2%. So for the facility fees, it's relatively straightforward. It's the entire committed amount of the facility multiplied by the 0.07% fee rate. The same thing for the security trustee fees. It's the 200 million committed amount multiplied by the 0.03% fee rate. For the commitment fee, it's a bit more complicated because the commitment fee is only payable on undrawn amounts, but for one quarter of the year, 60% of the facility was drawn down. So the way I'm gonna calculate this is to say, well, let's first of all assume that the facility was not drawn down at all. If that was the case, you'd have the 200 million multiplied by the commitment fee rate of 0.5%. So we'd have to pay a million in fees if we didn't draw down anything against this RCF at all. However, we did, for one quarter of the year, we don't need to pay this commitment fee on 60% of the whole facility 'cause we had borrowed the money at that time. So I'm gonna deduct from this the commitment fee that we don't need to pay. We don't need to pay the commitment fee on the whole amount that was actually borrowed. So the whole amount of the 200 million multiplied by the 60% that was actually borrowed. We don't need to pay the commitment fee when money's borrowed. And we multiply that by the commitment fee rate of half a percent. But that money wasn't borrowed for the whole year. The money was only borrowed for one quarter of the year. Overall, that therefore means that we have to pay a commitment fee of 850,000. For those three months during Q3, 60% of the RCF was drawn down and we don't have to pay a commitment fee on that amount but we do have to pay interest on that amount 'cause the money was borrowed during that time period. So the interest is payable not on the full facility size, only on the amount that was drawn down. So 60% of the full facility size. We multiply that amount that was borrowed by the interest rate, but that is an annual interest rate. So we need to de-annualize this by multiplying it by 0.25.

So during Q3, we don't need to pay the 150,000 commitment fee on the 60% of the facility that was borrowed but instead, we pay the interest of 600,000. Overall, therefore, we have to pay 1,650,000 in interest and fees for this RCF.