1. Many small companies use accounts receivable as collateral to borrow money for continuing operations and meeting payrolls. If a company borrows $300,000 now at an interest rate of 1% per month, but the rate changes to 1.25% per month after 4 months, how much will the company owe at the end of 1 year?

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1. Many small companies use accounts receivable as collateral to borrow money for continuing
operations and meeting payrolls. If a company borrows $300,000 now at an interest rate of
1% per month, but the rate changes to 1.25% per month after 4 months, how much will the
company owe at the end of 1 year?
Transcribed Image Text:1. Many small companies use accounts receivable as collateral to borrow money for continuing operations and meeting payrolls. If a company borrows $300,000 now at an interest rate of 1% per month, but the rate changes to 1.25% per month after 4 months, how much will the company owe at the end of 1 year?
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