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Axton wants to buy a home in Muthaiga. He has approached HFC for a loan of sh. 40,000,000 over a time period of 7 years.

Axton wants to buy a home in Muthaiga. He has approached HFC for a loan of sh. 40,000,000 over a time period of 7 years. The Annual percentage rate (APR) is quoted at 13% p.a. Calculate the annual repayment of the mortgage in the following ways: i) Using annual payment method. ii) Using annual interest method.

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