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Hewett Ltd . Co . , borrowed P 7 5 0 , 0 0 0 at effective interest rate of 8 % . The loan

Hewett Ltd. Co., borrowed P750,000 at effective interest rate of 8%. The loan was not used for 2 months as there was delay in getting building approval from the council, so the directors decided to transfer the money for a month to call account that earns interest at 4%.
You are required to calculate how much interest can be capitalized for the year.

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