## Design-build-operate engineering company, Macroeconomics

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A design-build-operate engineering company burrowed \$6 million for 3 years so that in can purchase new equipment. The interest is compounded and the total amount owed will be paid in a single lump sum amount at the end of the 3-year period. The interest at the end of the first year will be \$900,000.

a) What is the interest rate on the loan?

b) How much interest will be charged at the end of the second year?

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