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Your food service business has applied to a local bank for a $3 million loan. There is a 30% chance that the Olympics will come

Your food service business has applied to a local bank for a $3 million loan. There is a 30% chance that the Olympics will come to your city next year, increasing your net profits from $2.5 million (if no Olympics, 70%) to $5.5 million. If the bank can make risk free loans at 6%, what interest rate do you expect the bank to quote you?

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