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Question: A bank that provides overdraft protection charges 12 percent for each $100 (or portion of $100) borrowed when an overdraft occurs.
a. What amount of interest would the customer pay for a $440 overdraft? (Assume the interest is for the full amount borrowed for a whole year.)
b. How much would be saved by using the overdraft protection loan if a customer has five overdraft charges of $45 each during the year?
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