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Nancy borrows an amount from the bank today. She repays the loan by monthly repayments of amount plus 1 balloon payment (smallest balloon payment) made
Nancy borrows an amount from the bank today. She repays the loan by monthly repayments of amount plus 1 balloon payment (smallest balloon payment) made 1 month after the repayment. The loan charges interest at a monthly effective interest rate 1.25%. You are given that The outstanding balance at repayment date is $57262.08157. The outstanding balance at (2) repayment date is $46864.35403 The outstanding balance at (4) repayment date is $19768.42662. Calculate the total amount of interest paid by the borrower over the loan.
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