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1 . Two years ago, Paul borrowed $ 1 0 0 0 0 from his sister Gerri to start a business. Paul agreed to pay
Two years ago, Paul borrowed $ from his sister Gerri to start a business. Paul agreed
to pay Gerri interest for the loan at the rate of year compounded monthly. Paul will
now begin repaying the amount he owes by amortizing the loan plus the interest that has
accrued over the past years through monthly payments over the next years at an interest
rate of year compounded monthly.
a Find the size of the monthly payments Paul will be required to make.
b Find the outstanding principal at the end of years.Using formula
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