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1) Suppose a company borrows $12 million for a year at an interest rate of 5 percent annually, with all interest and principal to be paid at the end of the year?
a) How much money will the company give the lender at the end of the year?
Instruction: Round your answer to one decimal place.
$___ million
b) How much is the principal, and how much is the interest payment?
Instruction: Round your answers to the nearest whole number.
The principal is: $___ million
The interest payment is: $ ___
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