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5Now that they have accumulated a deposit of 40,000, Jack and Jill intend to use the deposit to take out a housing loan to purchase

5Now that they have accumulated a deposit of 40,000, Jack and Jill intend to use the deposit to take out a housing loan to purchase a home. The house costs $490,000. The loan is to be repaid in equal monthly instalments (end of month) over a term of 25 years.The interest rate quoted by the Bank is j12 = 4.8%pa.

  1. Calculate the effective annual rate on the loan.
  2. How much is the monthly repayment?
  3. How much interest is in the 90th repayment?
  4. How much would they still owe immediately before the 200th repayment?

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