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June borrows $20,000 from Westpac to buy a van. To repay the loan, there will be a series of equal annual repayments over 20 years, with a discount rate r = 10% p.a.
(a) Calculate the amount of June's annual repayments.
(b) Calculate the interest element of the 14th repayment.
(c) June decides to pay off the loan at the time of the 16th repayment (the 16th repayment has not been made). Calculate the amount required to payoff the loan.
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