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A loan of $50,000 is repayable by equal annual payments at the end of each of the next 5 years. Interest is 8% pa for

A loan of $50,000 is repayable by equal annual payments at the end of each of the next 5 years. Interest is 8% pa for the first three years and 12% pa thereafter.

a. Calculate the loan outstanding immediately after the second payment.

b. Calculate the total interest paid by the final three instalments.

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