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7. . ABC company borrows $ 100,000 \) at 4.7 % \) compounded monthly. The loan is due in 5 years. How much interest will the company pay?

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Answer: The interest paid on the loan will be approximately $25,409.6

Explanation: The interest paid on the $100,000 loan at a 4.7% annual interest rate compounded monthly over 5 years will be approximately $25,409.6.

This means that the total amount repaid by ABC company, including the interest, will be approximately $125,409.6.

The interest accrued due to compounding over the 5-year period leads to a significant portion of the total repayment amount.

It's essential for borrowers to be aware of the interest costs when taking out loans to make informed financial decisions.

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