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QUESTION 3 (20 Marks) A loan of RM300,000 is to be repaid by level annuity payments, payable annually in arrears for 25 years. The loan

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QUESTION 3 (20 Marks) A loan of RM300,000 is to be repaid by level annuity payments, payable annually in arrears for 25 years. The loan is calculated on the basis of an interest rate of 12% p.a. compounded monthly (a) Find the annual repayment (round off to four decimal places). (8 marks) (b) Find after which payment the outstanding loan will be less than RM180,000. (12 marks)

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