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Chelsea currently has $150,000 in the bank, earning 2 percent annual interest. She wants to start her own Christmas ornament business and plans to purchase
Chelsea currently has $150,000 in the bank, earning 2 percent annual interest. She wants to start her own Christmas ornament business and plans to purchase a suitable factory that costs $80,000.
What is Chelsea's total cost of purchasing the factory using $80,000 borrowed from a bank at an interest rate of 4 percent?
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