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Consider a loan of Sh . 5 0 , 0 0 0 with a 3 0 year term, interest of 6 % ( i +

Consider a loan of Sh.50,000 with a 30 year term, interest of 6%(i+p) payable monthly. The loan balance is adjusted for inflation at the beginning of every 2 year s based on the CPI. The CPI increase at end of year two is 5%. Compute the new loan balance at the end of year two.

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