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Jane has the opportunity to buy the freehold office premises she currently occupies for 200,000. She would be able to obtain a commercial mortgage for

Jane has the opportunity to buy the freehold office premises she currently occupies for 200,000. She would be able to obtain a commercial mortgage for 100,000 at a rate of 10% per annum. She would like some advice on whether or not to take out the mortgage to buy the premises. Advise her on whether or not, in your opinion, if she should take out the mortgage and buy the premises.

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