Find the outstanding amount on the loan

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Peter wishes to purchase a car to the value of R150 000. He applied for finance for the full amount. The finance company advised that a deposit of 10% will be required and the remaining 90% will be financed over 5 years with monthly payments. The annual interest rate is 18% compounded monthly.

What will the outstanding amount on the loan be at the end of year 1?

Reference no: EM132623256

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