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How many years will it take to fully repay the loan

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Question - Jane Smith is considering the purchase of a house and will require a bank loan of AUD800,000. The bank has indicated the following terms: 4.8% pa (monthly equivalent rate of 0.4%) fixed interest, 20-year term, monthly repayments, interest and principal such that the loan is fully repaid.

If Jane increases the monthly repayment by AUD1000, how many years (approximately) will it take to fully repay the loan?

Reference no: EM132932858

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