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Bruce Jones intends to purchase a home unit and needs to borrow money from the bank.
Details of the loan are as follows:
Loan Amount $714,000
Term (years) 20
Annual Interest Rate 6.00%
The loan is repaid using Monthly instalments.
At the end of the ninth year of the loan, just after paying the 108th instalment due at that time, Bruce has a windfall and is considering paying out the loan.
Required:
How much money would be required to discharge the loan at the end of the 9th year? (please use excel)
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