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You have recently worked out a line of credit arrangement that allows you to borrow up to $50 million at anytime. The interest rate for this is 0.47% per month. In addition to this, 4% 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.

Suppose you need $15 million today and you will repay in 6 months, how much interest will you pay?

Reference no: EM132596039

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