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Your company has taken a bank loan of $1,000,000 at an interest rate of 8% per annum. The loan agreement requires your company to pay the loan in equal monthly installments over a period of 10 years.
(a) What is the monthly instalment of the loan payment?
(b) What will be the remaining loan balance after four years of the loan period?
(c) How much of interest would your company pay during the first four years of the loan period?
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