A firm borrows $1,000,000 for a year from a commercial bank. The terms of the loan are 5% annual interest plus a 5% originating fee paid when the loan is granted. What is the annual interest rate? How much does the firm borrow to be certain that it has $1,000,000 to use?

Question

A firm borrows $1,000,000 for a year from a commercial bank. The terms of the loan are 5% annual interest plus a 5% originating fee paid when the loan is granted. What is the annual interest rate? How much does the firm borrow to be certain that it has $1,000,000 to use?​

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The Answer of A firm borrows $1,000,000 for a year from a commercial bank. The terms of the loan are 5% annual interest plus a 5% originating fee paid when the loan is granted. What is the annual interest rate? How much does the firm borrow to be certain that it has $1,000,000 to use?​

A Firm Borrows $1,000,000 for a Year from a Commercial