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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 $ million at any time. The interest rate is percent per month. In addition, percent of the amount that you borrow must be deposited in a noninterest bearing account. Assume that your bank uses compound interest on its line of credit loans. Suppose you need $ million today and you repay it in eight months. How much interest will you pay?
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