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Dan takes out a loan from his bank. To repay the money, he has the following 2 equivalent options at the interest of 6% p.a.
Dan takes out a loan from his bank. To repay the money, he has the following 2 equivalent options at the interest of 6% p.a. compounded quarterly. Option 1: He makes quarterly repayment of $2000 on the first day of each quarter starting from 1 July 2016. The last repayment is made on 1 January 2020. Option 2: He makes one single repayment of X on 1 April 2019. The following equations can be used to find X. 2000 X= (1.015i 1)*(1.015)^2 0.015 2000 X = 0.015 * (1 - 1.015-ng) * (1.015)"4 * 2000 2000 X= (1.01515 1) + 0.015 (1 1.015-no) 0.015 Calculate the following variables in the above equations. The variables may or may not be the same value. Show your answer as an integer (positive or negative). Do not include units like "years" or "months" (number only). Do not use comma separators. For example, 123456 or -123456 would be the correct format. n1= (0.5 mark) n2= (0.5 mark) n3= (0.5 mark) n4= (0.5 mark) n5= (0.5 mark) n6= (0.5 mark)
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