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Question - Peter has a housing loan with UOB Bank before the COVID 1 9 pandemic broke out. The details of the loan are as follows:
Principal: $1,000,000
Interest rate: 4% per annum
Tenure: 25 years
Repayment: Amortization with monthly repayment.
The lives of many were affected with jobs lost and businesses declining by the pandemic. Peter was adversely affected, too, and was unable to service his loan. Many banks, UOB included, showed compassion by allowing homeowners to defer full loan repayments by paying interest only for 18 months as a relief When this was announced, Peter had just paid the 120th instalment of his housing loan. Compute the monthly repayment before the pandemic broke out?
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