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A small manufacturing company borrowed $1 million and repaid the loan through monthly payments of $20,000 for 2 years plus a single lump-sum payment of

A small manufacturing company borrowed $1 million and repaid the loan through monthly payments of $20,000 for 2 years plus a single lump-sum payment of $1 million at the end of 2 years. The interest rate on the loan was closest to:

a. 0.5% per month

b. 2% per month

c. 2% per year

d. 8% per year Please explain your answer

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