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Zax started a small business selling computers and accessories last year. He took out a loan at the time, and currently owes the bank $393,000. Below is some additional information regarding Zax's loan:
Problem (a) Determine the equivalent effective monthly rate Zax is being charged on his loan as a percentage to 4 decimal places.
Problem (b) Using your answer from part a), calculate the level monthly repayment Zax will need to make in order to repay the loan fully after exactly 20 year to the nearest cent.
Problem c) As a result of the lockdowns, the bank has announced it will immediately lower the interest rate they are charging on loans to help small businesses. They are now charging an effective monthly rate of 0.49% on all loans (including Zax's).
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