How much will the company save in interest on the loan

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Question: A company borrows $29,000 to purchase a new piece of equipment. The loan will be repaid in one lump sum at the end of 6 years. The bank offers to loan the money at 0.5% per month, but the company prefers to repay the loan at 6% per year. If the company is successful at getting the bank to agree to its preferred terms, how much will the company save in interest on the loan?

Reference no: EM131956711

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