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CLAR lending wishes to achieve a 3 . 2 % pure rate of return ( r * ) on a portfolio of loans to a

CLAR lending wishes to achieve a 3.2% pure rate of return (r*) on a portfolio of loans to a certain class of customer. The company expects 1.8% inflation and a 12.0% probability of default, with .850 LGD.
What is the amount of 2024 interest that CLAR will record for a $500,000 loan made 20241031?

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