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Geoff and Gail wish to borrow $75,000 to be repaid by equal monthly instalments over 25 years. The nominal annual interest rate is 9.9 per

Geoff and Gail wish to borrow $75,000 to be repaid by equal monthly instalments over 25 years. The nominal annual interest rate is 9.9 per cent per annum.

a. What is the amount of the monthly repayment?

b. What is the effective annual interest rate?

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