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How long will it take until the loan is repaid

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Question - In order to buy a plot of land, a company needs a loan for €180,000. The interest rate offered is 6.5%.

a) If the company chooses a constant payment loan and makes a repayment of 2% p.a., how long will it take until the loan is repaid?

b) Suppose now the bank has established a maturity limit of 25 years on loans. What would you as a loan officer suggest your client?

Reference no: EM132815987

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