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2. The pinea corporation obtains a bank loan that is disbursed as follows Kshs 320 million , Kshs 240 million ,kshs 160 M and Kshs
2. The pinea corporation obtains a bank loan that is disbursed as follows Kshs 320 million , Kshs 240 million ,kshs 160 M and Kshs 80 M at the beginning of years one, two, three and four respectively . The loan is repaid in five equal instalments of kshs 300m at the end of years four to eight and a final amount at the beginning of year 12, given a rate of inflation of 3% per annum during the period, and if pineas real cost of the loan is 14% per annum. What should the final repayment be?
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