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On 15th April 2005, Amit borrowed $200,000 to be repaid eighteen months later by single payment of $240,000
Amit repaid the loan early on 17th July 2005.
(i) Find the sum paid by Amit to terminate the contract assuming that the interest is reduced proportionately for early settlement based on simple interest
(ii) Find the annual rate of interest implied in the original contract assuming compound interest.
(i) calculate the level annual repayments
(ii) construct an amortization schedule for this loan
(iii) use the amortization schedule to answer the following questions:
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