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You are considering the purchase of a house for $1,250,000. National Bank will offer you the loan at the rate of 6% per year compounded
You are considering the purchase of a house for $1,250,000. National Bank will offer you the loan at the rate of 6% per year compounded monthly. If you borrow the funds needed and repay the loan by equal instalments of principal and interest over 30 years, what are your montly repayments? Assume that the repayment is made one month after receipt of the loan proceeds.
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