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16. A company has borrowed S500,000. The loan is to be repaid in semi-annual payments over 15 years. Assum that the interest rate is 6%

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16. A company has borrowed S500,000. The loan is to be repaid in semi-annual payments over 15 years. Assum that the interest rate is 6% compounded semi-annually. a) Find the amount of each payment b) How much interest will they pay over the life time of the loan? c) What will the outstanding balance of the loan be after 5 years? 10

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