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2. Your bank is also offering a $1,000,000 5 year loan at 12%, and a requirement to keep $150,000 of that loan in your
2. Your bank is also offering a $1,000,000 5 year loan at 12%, and a requirement to keep $150,000 of that loan in your bank account at all times. You only need to pay the interest each moth, and pay off the million dollar principal at the end of the loan. You have the same revenue and expense profile given above.
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