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To finance the purchase of the machine by issuing $6 million, six-year, zero interest-bearing note to the seller on 1 July 2019. The expected interest

To finance the purchase of the machine by issuing $6 million, six-year, zero interest-bearing note to the seller on 1 July 2019. The expected interest rate for the note is 5.5%. The company is expected to pay off the note in six $1 million instalments, at every financial year end. The company employs effective interest method. Assume financial year ends December. Calculate the instalment and interest.

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