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A debt of $16,000 with interest at 8.8%p.a compounding quarterly is to be repaid with 10 equal end-of- quarter payments. How much interest is in

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A debt of $16,000 with interest at 8.8%p.a compounding quarterly is to be repaid with 10 equal end-of- quarter payments. How much interest is in the final instalment? (Hint use excel: You can either: First calculate the loan outstanding at the beginning of the last quarter. The interest can then be calculated as if you were setting up a loan repayment schedule for the final quarter. Use IPMT function) Answer: 1267.70

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