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You've worked out a line of credit arrangement that allows you to borrow up to $ 7 0 million at any time. The interest rate

You've worked out a line of credit arrangement that allows you to borrow up to $70 million at any time. The interest rate is .391 percent per month. In addition, 5 percent of the amount that you borrow must be deposited in a non-interest bearing account. Assume that your bank uses compound interest on its line of credit loans. Suppose you need $15 million today and you repay it in eight months. How much interest will you pay?

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