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Austal Ship plans to borrow 2

Finance

Austal Ship plans to borrow 2.89 million Australian dollars (A$) for three years. It obtains a floating rate loan from a bank at the interest rate equal to the LIBOR + 2.00 (%). Austal Ship also forecasts 3.76%, 4.43%, and 4.71% LIBOR in year1, year2, and year3, respectively. How much total interest Austal Ship needs to pay for A$2.89 millions in three years of the loan period? (enter the whole number without sign or symbol)

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Loan amount 2.89 million $  
Interest rate LIBOR +2%    
       
Year LIBOR Interest rate Inerest amount
1 3.76% 5.76% 0.166464
2 4.43% 6.43% 0.185827
3 4.71% 6.71% 0.193919
    Total interest payment in million $ 0.54621