Shaki-Maki LLC would like to sell a native type of ice-cream in the UAE and as such, needs…

Shaki-Maki LLC would like to sell a native type of ice-cream in the UAE and as such, needs funding for this investment project. The company is a new company on the global scene, however, it has been profitable in its home country for several years. The company approaches FAB with the request for AED 1,500,000 to finance its expansion, and the bank offers a 10% interest rate for an unsecured loan. However, if Shaki- Maki pledges collateral in the amount of 3,800,000, the bank is willing to reduce its interest rate to 7%. What are the annual interest savings for the company if they pledge the collateral for the loan?