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Problem: A loan of $90000 is made today. This loan will be repaid by 12 level repayments, followed by a final smaller repayment, i.e., there are 13 repayments in total.
The first of the level repayments will occur today, and each subsequent repayment (including the final smaller repayment) will occur exactly 1 year after the previous repayment. Explicitly, the final repayment will occur exactly 12 years from today.
If the interest being charged on this loan is 3.6% per annum compounded half-yearly, and the final smaller repayment is $600,
Required:
(a) Calculate the amount of the level repayments.
(b) Calculate the loan outstanding exactly 3 years from today after the repayment being made on that day.
(c) Calculate the loan outstanding exactly 8 years from today after the repayment being made on that day.
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