Question: On January 1, ABC, Inc. needs a fixed interest rate loan of P1,200,000 for 6 months starting on April 1. The FRA rate is 8%

On January 1, ABC, Inc. needs a fixed interest rate loan of P1,200,000 for 6 months starting on April 1. The FRA rate is 8% for the loan. If the actual rate on April 1 is 10%, how much interest in pesos, should the company pay the bank (actual cash outflow)?

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