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Check my if 370,000 people each receive an average refund of $1,850, based on an annual interest rate of 3 percent, what woul

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Answer #1

Total amount of refund = 370,000 x $1,850 = $684,500,000.

Annual interest rate = 3%

Annual interest = 3% x $684,500,000 = $20,535,000

Thus, the lost annual income from savings on those refunds will be $20,535,000.

Lost annual income: $20,535,000.

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