Problem

Assume that on October 1, 2012, Big Company borrowed $10,000 from the local bank at 6 perc...

Assume that on October 1, 2012, Big Company borrowed $10,000 from the local bank at 6 percent interest. The note is due on October 1, 2013. How much interest does Big pay in 2012? How much interest does Big pay in 2013? What amount of cash does Big pay back in 2013?

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