QUESTION 39

1. Your bank is willing to grant you a line of credit for up to $55 million with an interest rate of 0.55 percent per month. The bank requires that, 3 percent of the amount you borrow must be deposited in a non-interest-bearing account. Assume that your bank uses compound interest on its line-of-credit loans. If you borrow $12 million today and you repay it in six months. How much interest will you pay?

   		$441,414
   		$421,028
   		$413,902
   		$442,886